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Craig
Warner Properties Inc
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When is the lease Option put into a trust
Sunday, November 09 2008 07:11 AM
When doing a Lease Option when is this converted into a Land Trust? Reason why I am asking, doesn't the Lease Option open the doors for a lawsuit to any party involved in the contract? Therefore wouldn't one want to but this into a trust ASAP?
My partner perfers doing a land trust from the start because the less legal risk involved vs a Lease Option risk. On the other hand I have a very hard time selling the idea of the Land Trust because they give up the name on the deed.
The two edge sword.
Craig Warner
www.NY-IBuyHouses-Cash.com
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Randy Hughes
SFH Master Advisor
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Re:When is the lease Option put into a trust
Saturday, November 15 2008 04:53 PM
Craig,
See my comments in BOLD below.
Randy
When doing a Lease Option when is this converted into a Land Trust? Reason why I am asking, doesn't the Lease Option open the doors for a lawsuit to any party involved in the contract? Therefore wouldn't one want to but this into a trust ASAP? YES, YOU ARE RIGHT. YOU IDEALLY WANT THE SELLER TO PUT THE PROPERTY INTO A LAND TRUST IMMEDIATELY AND THEN YOU RECORD YOUR OPTION WITH THE TRUSTEE TO PROTECT YOUR INTERESTS.
My partner perfers doing a land trust from the start because the less legal risk involved vs a Lease Option risk. On the other hand I have a very hard time selling the idea of the Land Trust because they give up the name on the deed. I UNDERSTAND YOUR FRUSTRATION. IT DOES TAKE SOME EDUCATING TO GET THE SELLER TO COMPLY. START BY TELLING THE SELLER, "LOOK, BOB, I DON'T KNOW YOU AND YOU DON'T KNOW ME SO, TO PROTECT BOTH OF OUR INTERESTS LET'S PUT THE PROPERTY INTO A LAND TRUST (WITH YOU AS BENEFICIARY) AND THEN STRUCTURE OUR OPTION AGREEMENT AROUND THE LAND TRUST."
WHETHER YOU USE A LAND TRUST OR NOT, BE SURE TO RECORD YOUR OPTION AND A MORTGAGE TO PROTECT YOUR OPTION INTEREST FOR A REAL BELT AND SUSPENDERS APPROACH TO OPTIONS.
Randy Hughes
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