Do you have the seller put their property in a trust then do the closing when I have a buyer or is it all done at the same time at the closing?
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Scott Paton:
Do you have the seller put their property in a trust, then do the closing when I have a buyer or is it all done at the same time at closing?
Lou Brown:
If you are purchasing from a seller, well, I’m saying you’re not purchasing. What the seller does is the seller does place their property into their trust. What you purchased is the beneficial interest of the trust, or perhaps your trust. Another trust like a personal property trust, for example, could purchase the beneficial interest of that land trust. Well, in Land Trust, that differential that occurs in a land trust is that the beneficial interest is personal property. It’s not real estate. So, that’s what you’re really purchasing when you’re doing a property subject to the existing loan.
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