How to Owner Finance from a Land Trust

[George Creel]

I've been searching for an answer to this question for a while and would really appreciate help from anyone with some experience with Land Trusts and/or Owner Financing.

I want to try to acquire properties Sub2, but in the safest way possible, and then try to owner finance. I believe I understand the acquisition side of this type of transaction. I have a motivated seller deed their property into the trust, then assign their beneficial interest to me. However, since my goal is to then Owner Finance these properties to new buyers, I am not sure I understand how to do this from a land trust.

Let me say first, I don't want to dissolve a trust which I just set up to acquire the property.  I want to keep the protection the trust provides until the owner is ready to obtain conventional financing and pay off the original mortgage and the note he signs with me  (which wraps the seller's mortgage.)  The only way I can think to keep the trust in place and owner finance is to finance my beneficial interest and not the deed.

So, this is what I think can be done...and I hope someone can tell me if they think this is a good idea.

1.  I, as owner of 100% beneficial interest, agree to sign over that beneficial interest to the buyer.

2.  In return, the buyer signs a promissory note and a Collateral Assignment of Beneficial Interest as security (sort of equivalent to note and deed of trust.)

Does anyone out there have experience with this?