Hi Everyone! I am new to this forum, but already have done a few deals, thanks to Seth. Many lists provided by data sites are full with owners owning their land under Trusts. Has anyone ever bought from such sellers, or rather remove them from my mailing list because they are less likely to sell? Thanks!
@gary-sk I've been researching this because I got accepted offers from 2 Trusts last week. I did not know they were Trusts when the mailer went out. It is more work but may be a good strategy if you have a good process in place for dealing with Trusts. Many land dealers focus on Trusts being at the top of the mailing list because others do not want to deal with the extra due diligence.
1 Like
@suitedconnector Ok. Thank you for your reply!
Hey @gary-sk! I think it depends on whether you're planning to self-close or use a title company. If you're trying to close it yourself, a trust (similar to an LLC or corporation) requires a lot more paperwork and verification to make sure you're dealing with the right person(s) who is/are authorized to sign on behalf of the trust. If you don't know what you're doing, it's actually very easy to mess things up. Luckily, this work isn't hard for a title company or closing attorney to handle, but it can be a HUGE pain for someone like you or me because this is a bit more complex than just buying from one or two individuals who own the property in their personal name.
However, if you're planning to use a title company or closing attorney anyway, and you already know this before you send out the mail, then I think it's totally worth including them.
For most people, the decision on whether to self-close depends on the price point, so if you know you're going after a bunch of super-cheap stuff (i.e. - you'll have to close in-house in order for the deal to make sense), then you might want to exclude trusts and corporations from the list... but if you're going after higher-end properties, where the cost of a closing agent is a no brainer anyway, then then can handle all of this complicated stuff for you as part of the price for their work.
@retipsterseth Thank you for taking your time to give your advice! I actually always use a title company local to the property for all my deals. I guess I'll keep them on my lists