If you have never owned 1-2 family rental houses, you don’t know what you are missing:

1- Negative cash flow-In most areas of the country, rents do not cover all of the property’s expenses.

2- The cost and hassle of maintenance and repairs. There is always something that needs fixing or replacing.

3- Tenant problems-Late rent payments, complaints and turn over are common.

If you have owned or currently own this type of property, you know I have understated the horror of it all, especially if you are an absentee owner!

Now, using a unique investment strategy, you can invest in rental property with extraordinary profit and no tenant, toilet or trash problems.

This strategy allows you to enjoy the fruits of rental property ownership without the thorns, even if the property is located in another state.

You will be able to snap up the “builder closeouts”, pre-foreclosures and bank repos that are just starting to spring up around the country as the real estate market goes into reverse.

If you have good credit, you may even be able to buy your investment with no money down. If not, you should be able to buy with as little as 10% down.

Using our strategy, you will receive 15%-18% annually on your invested cash, if any; a guaranteed immediate profit, annual equity buildup, potential appreciation and depreciation!

Imagine this scenario:

You buy a rental property for no money down.

You immediately sell the property for a 20% profit!

You start collecting profitable passive mortgage payments each month!

The new owner pays all of the bills, does the maintenance and makes all repairs!

You collect your passive income with no hassles for years. When the property is sold or refinanced, you first receive the balance of your profit AND 33% of the equity buildup that occurred over the term, resulting from the mortgage pay down.

You also receive 33% of any appreciation that has taken place over the period above your initial selling price.

These are the benefits of the New Equity Share Program!

Sound idyllic? Sound unrealistic? It probably does to you. I hear the questions:

Why would the co-owner agree to do all of that?

What if they didn’t pay as they agreed to?

What if they didn’t make the repairs?

What if we have a disagreement on how to run the property or when to sell?

What if they run into financial difficulties and liens and judgments are placed on the property, won’t I be responsible too?

What if they had marital problems and had to sell the property?

What if they died and the property got tied up in their estate?

Those were the kinds of problems that destroyed the old equity share programs of the 1980’s. The New Equity Share Program eliminates all of them.

The difference? The title to the property is transferred to a land trust.

The land trust has rules and enforcement abilities which eliminate all of the problems recounted above.

Copyright 2006 Bill Young. Go to Part 2 of this article =>New Equity Share Program - Painless Profits in a Bad Real Estate Market! Part 2

Bill is a former bank loan officer and financial consultant. He is a real estate investor and a land trust consultant. He is available to speak to your group or to consult with you individually. He can be reached by phone/fax/email at 8772913642@ureach.com or visit his web site: http://NewEquityShare.Com

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Many small real estate owners (1-4 unit properties) are confused about the best entity to hold their real estate, with potentially disastrous consequences.

In fact, the majority of small property owners still own their properties in their personal names.

Perhaps they read a book or take a course on asset protection. They become aware of the disastrous consequences that can befall property owners who own property in their personal names.

All it takes is a couple of mouse clicks in the age of the Internet to get a complete listing of every property owned by you in the entire county! You can lose everything you own, not just the real estate, to judgment creditors, lawsuits, liens, the IRS, etc.

It is a proven fact, that those who can be shown to own property are at a far higher risk of being sued than those who do not own property.

Then they have to decide. Should they use a corporation to hold their property, a C corp. or an S corp? How about an LLC or a partnership?

There are serious downsides to using the wrong or inappropriate entity.

Tags: asset protection, creditor, investor, judgment, land trust, lawsuit, liability, mortgage, Real Estate, sueasset protection, creditor, investor, judgment, land trust, lawsuit, liability, mortgage, Real Estate, sue

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To begin with, your ownership of the property will be protected against any liens, judgments or lawsuits against you or the other co-owner.

In actuality, the fact that you legally do not own the property, (the trust does) makes you an unlikely target of a law suit. Ask any lawyer. When a prospective client comes in to file a law suit against you, the first thing the lawyer will do is to do an asset search to see what assets, such as real estate you own. No assets? No suit.

Disputes arising from differences between you and your co-owner are precluded by the trust agreement, which is drawn up and agreed to by you and your co-owner prior to entering into the transaction.

It clearly spells out the responsibilities of each party; who pays what and when, who does what and when. And of course, one of the most important obligations of the beneficiaries are the financial ones.

The trust agreement is very clear and direct. If either beneficiary does not meet their financial obligations in a timely manner, their ownership interests are in jeopardy.

In the case of default by the resident owner ( the one occupying the property) the trustee serves them with a Notice of Eviction.

There is no drawn out and expensive partition and sale or foreclosure action needed as the former resident beneficiary’s status has become that of a holdover, a non-paying occupant of the property, subject to eviction in 30 days in most jurisdictions.

It should be obvious also that since the property is not owned by the co-owner, his divorce or even spontaneous combustion has no effect on the property.

It is interesting to note that another quirk of the trust law is that the bank cannot call the mortgage because you sold part of the property, the title is owned by the trust.

Now, the question remains, why a person would take on the responsibility of becoming a resident co-owner?

There is a huge pool, millions of people, literally, who desperately want to own a home but do not or can not qualify for a mortgage. So, even though they have the income, they are still unable to buy their home.

Typical people in this situation are small business people, self employed people, foreign nationals and those recently out of bankruptcy or with foreclosures on their records.

The trust allows these buyers to move into their own home right away, to enjoy all the advantages and responsibilities of home ownership immediately and without worry.

The fact that the resident co-owner shoulders the responsibility of paying the mortgage, doing the maintenance and repairs while living in the property entitles them to all of the tax benefits accruing to a home owner. (In IRS speak, they have all the “burdens” of home ownership.)

In return, they share the equity resulting from the pay down of the mortgage as well as a share of future appreciation with you, their co-owner. And of course, the psychological pride of ownership is a benefit as well.

These people would jump at the opportunity to be able to own their own home now without the intrusive bank red tape. The co-owner arrangement allows them to have their cake and eat it, Now!

The co-ownership arrangement could continue indefinitely or until your co-owner decides to get his or her own mortgage or wants to sell the property.

At that time, they would pay you your share of the appreciation and equity buildup and pay off your mortgage.

Ask your realtor or lawyer to help you set up a New Equity Share program today!

Copyright 2006 Bill Young. Bill is a former bank loan officer and financial consultant. He is a real estate investor and a land trust consultant. He is available to speak to your group or to consult with you individually. He can be reached by phone/fax/email at 8772913642@ureach.com or visit his web site: http://NewEquityShare.Com

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