Q. Listening to the CDs. The discussion about creating a funding company and trust and getting money on Promisory Note was an epiphany. I didn't sleep all night thinking about it. Can you please give me some details about how to set up the funding company and the Trust? What kind of
Trust is it? I assume it\'s not a Land Trust since a Land Trust has to be funded with a specific piece of real estate. Who is the Grantor? How does the trust get funded before someone makes a loan to it? Who holds the beneficial interest? Can an IRA through Equity Trust make loans to the Trust on Promisory Notes (not secured by specific real estate)? Hopefully there is a description of all this you can send me or refer me to. I have the Enchalada. Thanks
A. Earl, glad we could contribute to a sleepless night!! I know how you feel. I was the same way when I discovered the promissory note format.
I use a personal property trust. The grantor is me, as I am the trustee as well. The grantor is not that big of a deal, as nobody really sees it. I hold the beneficial interest and it flows into another one of my trusts or into my LLC.
I as the trustee sign the promissory note with my financial partners. Since my numbers and amounts of secured private funds has dramatically increase, I carry a significant life insurance policy where if I were to die, the partners are paid out immediately and my heirs get the property. (Kinda cool huh??)
An IRA from Equity Trust can be involved. You will need to contact them to be clear on the process.