Why do investors excluse trusts for mailings?

[Michael Kev]

On reading threads here about direct mail, I notice everyone excludes trusts when they're cleaning their lists. I was just wondering why they aren't good to mail to?

[James N.]

Depending on how the Trust is setup, Wholesalers would be wasting their time and Rehabbers would end up likely having to pay a higher price for the property.

The Trustee(s) have a responsibility to the beneficiaries of the Trust. The Trustee(s) must look out for the best interest of the beneficiaries. When the Trustee(s) sell Real properties, it is subject to the approval of the court. The court must approve the sale. The court will bring in a real estate agent to confirm if the price is fair. The Court protects the beneficiaries of the Trust from being ripped off by a unscrupulous Trustee such as selling the Real property below market value to their girlfriend/boyfriend/business partner/etc... There are additional hurdles for a wholesaler to go through and the property will not likely come in at a discount that would be appealing to them.

When it comes to disposition of real properties from a Trust, the vote must be unanimous. For example, if there are four Trustees on the Trust and three of the Trustees vote to sell and one of the Trustee refuse to sell then you cannot sell.

The Trust is not a public document, so you will have harder time contacting each Trustees. If there are four Trustees, you need to spend extra time marketing to the four different persons.