taking the deed

[royemunson]

ok, quick question. in ohio (maybe allover)
using trusts to take deeds or to put any other real estate in has
become taboo as teh attny general is researching these transactions
heavily.

what other form would you suggest putting these in?

LLC's were thrown around, but I wanted to get some clarification
on this topic as I come across this scenario often.

Also they discussed filing a memorandum of something at the courthouse?

Any thougths??

JOe

 

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[reipro]

Joe,

There are many different ways to take title to a property. Land Trusts became popular in Ca many years ago to avoid the transfer taxes that were involved in selling real estate there. In many states and counties it is very expensive to transfer real estate. The other reason for using these types of trusts is to hide who actually owns the property. This way it does not trigger a due on sale clause in a mortgage. Most lenders in todays market are just happy to get there payments so there in not much due on sale going on.

If you want to flip the house you would want to look at a Sub S, if you were going to hold it as a rental you would want to use an LLC