Re: [tips_and_tricks] What is a safe way to buy real estate if you have the cash?
- I have always found it best to have the seller put the property into
an Illinois Land Trust (perfected by Chicago Title) then transfer the
beneficial interest to you.
The trustee holds both legal and equatable title so you have to
choose your trustee well. Also, you can name several substitute
trustees within the deed into trust so if need be they can be
substituted in case of death, or some other problem with the
originally named trustee.
One feature about this type of trust is that the trustee holds both
legal and equatable title. All the other trusts have the title split
between the Trustee and the Beneficiary. Another feature is that the
title is registered in the name of the Trustee and not a beneficiary
so that no one knows, on the record, who the beneficiary(s) is/are.
The down side, as mentioned above, is that since the Trustee holds
both legal and equatable title, he can sell the property out of the
trust without your knowledge. Again, pick your trustee well.
Just a thought.
___ Thank you for your message at 04:45 PM 2/24/06, fastmuscleman.
Your message was:
>What is a safe way to buy real estate if you have the cash?
>I have a friend who has not paid income taxes for years.
>This person can now afford to buy a home without financing.
>Here is the problem.
>This person does not yet have a notice of federal tax lien filed
>In addition, if this person does pay off the mortgage all at once
>will this transaction be reported to the Feds?
>It appears that if they do use either money orders,cashiers checks &
>or wire tranfers that they will get reported.
>Any currency transaction $3000 or more gets reported.
>My friend was thinking of using a trust to protect their asset or
>Any suggestions or advice to avoid unnecessary hassle?