WELCOME TO
EQUITY HOLDING CORPORATION
Our goal is to introduce you to the many
benefits of the Land Trust and the advantages intrinsic to this type of
entity, and links to sources providing information on how to set up a land
trust.
What is a Land Trust?
A Land Trust has been in use throughout the United States
for more than 100 years. Has the effect of converting ownership of real property
to ownership of personalty, even though such ownership is characterized for
income tax purpose as ownership in real estate. The primary purpose of the trust
is to provide its beneficiaries a practical, economical (and anonymous)
alternative form of real estate ownership and use.
A land trust is easy to establish and inexpensive to
maintain. It is a method of real estate ownership whereby a trustee holds legal
title to real estate, while the trust’s beneficiary(s) have complete control
over its management and the power to dispose of the property.
In recent years the evolution of the land trust into an
innovative and yet simple arrangement, method and/or system whereby a real
estate investor may acquire or dispose of real estate ownership without the
necessity of new financing or particular down payment requirements has become
popular.
The Land Trust as an Investment Vehicle
The use of a “Land Trust” as a method of concealing
ownership of property has gained enormous popularity. The real estate
entrepreneurial community has latched on to the land trust as a creative method
to convey interests in property without awakening the institutional “sleeping
giant” - the infamous “due on sale” clause contained in almost all Trust Deeds
and Mortgages held by Federal and State Chartered Banks. This opportunity
exists when sellers of real estate are willing to remain on the existing loan
and allow another party to assume all of the costs and tax benefits of the
mortgage.
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