What Is A Real Estate Land Trust?

In the real estate business, there are any number of ways that you can turn a profit from buying and selling investment properties

. Whether the deal is wholesale or retail, land contract or lease-to-own, there are many methods one can pursue in order to make money. Which strategy is pursued often depends on the particular needs of individual buyers.

Many people struggle with the concept of land trust because they do not understand it. It's not a term that's regularly used in modern media. However, it can be highly important for a company that purchases a great deal of real estate.

The textbook definition of a land trust is an arrangement in which one party, known as the trustee, agrees to own a piece of real estate for the benefit of a second party, known as the beneficiary. In today's business climate, such an agreement simply represents good business. It's a win/win for both the trustee and the beneficiary.

With land trust, the company keeps its name off of the public record. In other words, it is not officially listed as the owner. There is good reason for this. If the company is listed as the owner, it quickly becomes a target. For instance, if someone slips and falls on a parcel of property, he or she will want to sue the owner.

As a result, when the company considers acquiring a property, it does so under the name of a trustee. The trustee is the officially listed owner. From a record-keeping standpoint, this is simply the best way to do business.

Each property has a separate land trust, so if there's a problem with one property, all of your property won't be tied up. In other words, your entire business will not collapse as a result of troubles with one piece of land.

The acquisitions manager gets paid whenever a house is bought or sold. They turn in an invoice and is therefore compensated. In addition, the manager may be paid for completing paperwork, since that can be a time-consuming activity.

Can you make a good living as an acquisitions manager? The answer is a definite yes, if you have ambition, energy, and a knack for finding the right properties. If you can build up an extensive portfolio, you will be able to earn a comfortable living by following your list of leads-and you may just have fun in the process.

by: Alan Cowgill

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