OfflineI was reading up on Land Trusts recently, and after going through a few of carols chats on Insider Elite about how to use Land and decided I would give it a shot.
The process would be as follows: (as I'm sure most are aware)
Make offer as YOUR NAME "trustee of ABC Investment Trust"- exact vesting TBD at Closing. This is done so you have time to market for a buyer once your offer is accepted. After your offer has been accepted, and you use your "14 day inspection" timeframe to locate your end buyer, you label them as beneficiary just before closing, collect your wholesale fee, and get the Trust Agreement notarized by your closing agent. After closing, you resign as trustee and have your end buyer appoint a new trustee. The name of title never changes thus side stepping the banks "non assignability" clause
I was about to make an offer until my realtor sent me the bank's "REO Purchaser Prescreen" form. In the bottom of the form, it asks for the following information if making an offer via Trust
Full Name of Legal Entity
Full Address of Legal Entity
Entity's Tax ID #
State of Organization
Names of All Owners of Legal Entity
Name Of Parent Company
Address of Parent Company
Name of Individual w Signature authority
Naturally this proves to be a problem with the above mentioned method of going about wholesaling w the Land Trust. If the bank wants all names of owners up front then that defeats the whole purpose of this method. Can anyone help with more information on how to go about using a Land Trust when you have to fill out these prescreen forms?? Or any other method for that matter? I thought the whole point of the Land Trust was to keep the beneficiaries "hidden". Help!
Also, my proof of funds and bank statement have come from a private lending company that i was turned onto from the coaches at PMI. Is this okay if my "beneficiary" is a someone from my cash buyers list?
-Pete
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I have submitted 7 offers already with a land trust name and haven't gotten anything back from my realtor stating that the banks want all the info you explained above. I which bank was the REO from? It might just be that bank giving you the problem, try another one to see if this is true probably for all banks in your area. If Carol said she makes all her offers in a land trust and gave us the exact process she follows to close on a land trust then I'm guess she is not having this problem with the banks asking for more info. Send Carol a PM on IE and ask her what she thinks about your situation.
Reynold Orozco
Yes i sent carol a private message already just waiting for a response. We actually live pretty close to each other, only 15 miles, so I would have thought her technique would have worked especially well for NJ wholesalers like myself. Anyway, the link to form i was sent is below so you can all take a look at it. It's from CitiMortgage.
http://bhammls.net/BAARReports/Media/585049_184135.pdf
-Pete
I was just wondering if Carol ever responded to you.
she has not unfortunately
-Pete