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Jan 13

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Real Estate Investing – Unleash the POWER of the Land Trust!

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unleash the power orangeWhen I began wholesaling properties in 2008 the strategy for transferring a real estate purchase contract to my buyer was a pretty simple process. A real estate Purchase Agreement and an Assignment Contract was all that the average real estate wholesaler needed to make a profit. Foreclosures were few and the majority of the properties that I wholesaled were being sold by the owner not the bank. I was not faced with the stumbling block of a deed restriction or a “no assignment” clause to try to hurdle over. There was not much creativity needed to close a deal as it was pretty cut and dry and the only contracts needed to close were the Purchase Agreement and the Assignment Contract. I went to closing and got paid. YES, it was that simple!

As any Wholesaler will tell you wholesaling is anything but simple in today’s real estate market. With the current market saturated with REOs and Short sales a Wholesaler in today’s market needs to be a contract genius to get a deal closed. The deed restrictions and “no assignment” clauses put in place by the bank on these properties leaves a Wholesaler scrambling for ways to get a deal closed and make a profit.

The deed restrictions ( a property can not change ownership for 30, 60 or 90 days after purchase) put in place by the bank make it impossible to double close on a property and with the “no assignment” clause stated in bold on the purchase agreement with the bank a Wholesaler is left with 2 choices… get creative or don’t get paid. Unfortunately this has caused many Wholesalers to avoid even making offers on these property in fear of not being able to get them closed. In many states REO and Short Sale properties make up 70% of the current property inventory and unless a Wholesaler is creative enough in getting them closed he is losing out on the massive inventory of discounted properties at his fingertips.

Since my primary real estate market is in NJ ( the second largest foreclosure market in the Country) I had to get creative. I was NOT going to give up until I found a way to leverage such a massive market full of inventory. I saw the potential of making huge profits if I could find a way to wholesale these properties in spite of all of the roadblocks set up by the banks. I searched for a way that I could move these properties over to my buyers quickly and easily. I wanted a wholesaling strategy that would not only enable me to close bank owned properties quickly and easily but one that I could use on all of my wholesale deals. A cookie cutter strategy that would totally eliminate any and all stumbling blocks that may hinder me from closing on any property. I wanted a strategy that was simple to implement yet POWERFUL enough to bypass anything that stood in between me and my wholesale profit.

I tried and tested many real estate wholesaling strategies, tossed some and tried to tweek others. Then after much trial and error I developed a strategy that was as POWERFUL and simple as I needed it to be. I found that a simple title holding trust, known as the Land Trust, could be the most valuable wholesaling strategy ever created. The purpose of a land trust is to allow one to have the legal title to his property held by another person, or trustee while retaining all of the rights and privileges of property ownership (the beneficial interest). In a land trust, it is possible to privately transfer the beneficial interest in the trust (the actual ownership) without ever changing the deeded ownership of the property. This meant that I could make an offer on a property in the name of a Land Trust and my Buyer could close in the name of that land trust without ever violating the deed restriction. This also meant that I could assign the beneficial interest in the Land Trust without assigning the property contract itself making the “no assignment” clause irrelevant in closing my deals.

I took the simple Land Trust a bit further and developed a wholesaling strategy that I can use on every deal to get them closed quickly and easily. This POWERFUL strategy means that I can close more deals and increase my wholesaling profit!

I would like to share this new strategy with you in my NEW eBook UNLEASH THE POWER OF THE LAND TRUST.

My NEW eBook will show you how to use a Land Trust to…
Close REO and Short Sale Properties quickly and easily
Simply acquire a property subject to the existing financing
PLUS have all of the Contracts needed to implement each strategy 
I have also included a few of the other strategies that I developed in my quest for the ultimate strategy!

 

About the author

cstinson

Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

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