Want to use a Land Trust to wholesale an REO but...

[Peter V.]

I was reading up on Land Trusts recently (for wholesaling purposes) and decided I would give it a shot.

The process would be as follows:

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 purpose of the land trust was to keep the beneficiaries "hidden". Help!

Also, my POF letter and bank statement is from a private lender thru a funding company, they are not my own funds. If my beneficiary isn't the same name on the POF letter and bank statement, and instead its someone from my cash buyers list, will this pose a problem.

Here's a pdf of the document mentioned above

http://bhammls.net/BAARReports/Media/585049_184135.pdf

Thanks in advance for any insight!

[Kris Haskins]

wow, the issues and delimma wholesalers go through, Didn't used to be like this. We're buying houses in trust every month. Matter of fact, it's the ONLY way we buy. I've had my attorney close the deal with us being the original beneficiaries and trustees. Then, the next day sell the trust to another party or deed it to them. What's your main issue? is it that you don't want to give them your beneficiary and trustee name? I don't see a real problem as you can change them at any time, per the trust. You may not want to let them know as they could cancel the sale.

ANother way we've done this is to add the buyer to the purchase contract, then quit claim yourself off the deed after closing . I wouldn't be to upset, just another small hurdle, you're going to get this thing closed, no prob. If any of this info helps in any way, pls vote for this post.... Make it happen...