" The benefits to me are:
1) Recovering my costs upfront through my markup
2) the security of $ 20,000 down( people will do everything possible to not lose that much money by defaulting on the contract) 3) 7 % interest on my markedup equity
4) 3.75 % arbitrage( read, cash flow profit on the bank ' s money) because I get a new first mortgage at 80 % of the purchase price at 3.75 %." everything possible to not lose that much money by defaulting on the contract) 3) 7 % interest on my markedup equity 4) 3.75 % arbitrage( read, cash flow profit on the bank ' s money) because I get a new first mortgage at 80 % of the purchase price at 3.75 %. My benefits are many, but you should always ask yourself when doing real estate deals,“ where can this go wrong?” The answer is,“ if the buyer defaults, you have to foreclose.” Foreclosure is a long legal battle that will cost you legal fees, lost cash flow, sleepless nights, and 612 months of making your mortgage payments without income. How can you avoid this risk? USE A LAND TRUST!
When I close on the purchase in the morning, I take the title directly from the seller into my Land Trust. Then, when I sell the Beneficial Interest on an installment contract later that same day... I sell the Beneficial Interest in the trust( which is personal property in a vast majority of states.)
This is a private transaction that is not recorded and does not cause a“ cloud on my title.” If the buyer defaults, I repossess the Beneficial Interest... I do NOT have to foreclose! Repossession takes about 30 days, and I can do it myself. If the buyer does not vacate voluntarily, I evict them under a monthtomonth lease situation.
The Land Trust will serve you well in many ways. The methods described above are only two of many techniques to make money, create safe cash flow, and keep your name out of the public records using a Land Trust. Learn all you can about Land Trusts; they will make you tons of money!
I encourage you to learn more by going to my FREE online training at www. landtrustwebinar. com / 411 and text the word“ reasons” to 2062032005 for my free booklet, Reasons to Use a Land Trust. You can also reach me the oldfashioned way by calling me at 217355 1281.( I actually answer my own phone, unlike most other businesses in America today!)
How can you“ be the bank” and reduce the risk? Use a Land Trust! I like to buy houses and resell the Beneficial Interest in the Land Trust the same day on an installment contract. I buy at the best price I can negotiate, mark the price up to reflect my time, initial investment, and transaction costs, and sell to a user at 7 % with a 25 year amortization and a fiveyear balloon. The number of Americans“ out there” that would love to buy a house but need help getting into the market is tremendous. They cannot qualify for a loan now( and maybe never) because of a myriad of disqualifiers. I require at least 20 % down and payments to me including principal, interest, and 1 / 12 the tax bill. They are required to buy their own insurance and make my trust the Additional Insured.
The benefits to me are 1) Recovering my costs upfront through my markup 2) the security of 20 % down( people will do
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" Foreclosure is a long legal battle that will cost you legal fees, lost cash flow, sleepless nights, and 612 months of making your mortgage payments without income. How can you avoid this risk? USE A LAND TRUST!"
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