How do you wholesale with a land trust?

How do you wholesale with a land trust?

Member since 2014 · 6 posts · 3 votes

My reasons: to have privacy and avoid as many costs, fees and taxes as possible; my idea was to get the seller to sign their property on a warranty deed to trustee (recorded) with me of course being the beneficial interest and the trustee being something else other than a LLc (since LLc's have to be seen as active in the system, be generating income, be taxed at the end of the year and me needing to use my real name and info. to set it up), then assign that property to an investor using the trust agreement (not recorded). Thing is the seller would have to agree to it and there be no money down required on the deal, since I don't have that upfront. As far as the title company, they'll be just for the escrow account and title search (no need for any closings) or can I just do that with a notary (can they provide escrow accounts or is it only title companies?). 

Another thing, who creates the warranty deed to trustee forms and how much will it cost me to get it done....or does someone have one I can use that's worked for them for deals in Dallas, TX

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  • Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
    12y

    Wow.  I have no idea what it is you're actually trying to accomplish with that process you've just laid out or why you would want to. 

    What you just described, at least the way you laid it out, has the seller giving up title to their property for nothing and leaving them in an incredibly vulnerable position.

    Again, I have no idea what you're truly attempting to accomplish, but it feels like a really shady arrangement you're creating.

  • Member since 2014 · 6 posts · 3 votes
    12y

    sorry, forgot to mention about the money part, the seller will get their asking price during closing from escrow and the end buyer will provide it before i assign the trust over to him. all partied will get what there suppose to out of the deal, its just trying to avoid all the costs through a title company that comes with it ( eventhough the end buyer would mostly be responsible for that, but still it might require a little bit of funds from me and i wouldn't have that). Sorry again for not mentioning the money part, no shady buisness intended, just wanted to know if this would work on avoiding a lot of fees and taxes while providing privacy on my part untill i assign it over.

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