There are a lot of bloggers out in internet land talking about using Land Trusts to avoid seasoning requirements and accomplish double closings. Here is a real life case study you can learn from and use for your own double-deals.
In May I was contacted thru email by a seller in distress. The seller and his wife saw my “we buy houses FAST” insert on the bottom of one of my FOR RENT signs and went to my “seller’s website” to submit their house information. Once I received their email outlining their situation I called them to make an appointment to see their home. The sellers were in the process of moving out and “leaving the house behind.” They had already missed their first house payment and had stopped paying their homeowner’s insurance premiums.
I called their lender with them at the kitchen table. We were put thru to the “short sales department” and were told to submit various documents for consideration of a less than full loan payoff. After a month of phone calls and paperwork we closed the deal. Here’s the rub.
The buyer under my contract to acquire this property was my Land Trustee. Prior to closing I came to an agreement with a third party buyer who wanted the house to rehab. At closing I assigned my beneficial interest in my Land Trust to the third party buyer and HE closed the deal. This prevented me from having to close the deal myself (and incur closing costs) and then re-selling to my new buyer. Therefore, my net profit was the same as my gross profit.
This method of using a Land Trust also prevented the lender from objecting to the deal as the buyer (the Land Trustee) remained the same throughout the transaction. If you want to do these kind of double-deals, be sure to use a Land Trust for maximum profit and efficiency.