What is Your Objective?

  1. Review and Confirm Your Objective
  2. Start Your Transaction


Acquisition or Disposition of Real Property

When one’s intended use of the EHTrust
Transfer™ is to dispose of or acquire real estate
ownership, while avoiding new mortgage financing,
standard down-payment and institutionally-imposed
credit restrictions…

The Mortgaged Property EHTrust Transfer™


  • The Mortgaged Property EHTrust Transfer™ ModelA current property owner vests its mortgaged property in a bonded and licensed, non-profit entity that serves as trustee for the owners’ own inter vivos, title-holding (Illinois-type) land trust.  The owner-of-record then appoints a Co-Beneficiary in the trust, whose duty it is to lease the property from the trust (i.e., via a Triple-Net Lease)  whose aggregate monthly lease-payment includes all regular costs of ownership in exchange for the full benefit of Fee-Simple real estate ownership…which benefits are inclusive of income tax deduction benefits, appreciation potential and mortgage principal reduction (re. the underlying mortgage financing).
  • All of these ownership benefits accrue to the acquiring party entirely without the need for standard credit or down-payment requirements.  Note as well that in this arrangement, throughout the term of the contract all aggregate payments (i.e., interest, principal, taxes, insurance and any HOA dues) are paid to a bona fide licensed and bonded third-party collection and disbursement service that handles all receipt and payment record-keeping; and which is service funded entirely by the Trustee without cost.
  • Regarding title holding fees…for its relative risk in holding-off (‘sometimes hostile) inquiring parties, and or serving as the buffer against litigation, there is a standard (annual) charged of 0.05% of the property’s Mutually-Agreed-Value (MAV) at inception, ‘which fee is paid monthly to a maximum of $139 per-month and a minimum of $39 per-month,  This fee is included as a portion of the resident beneficiary’s aggregate monthly lease payment, which includes: mortgage-principal and interest; property tax; insurance; any Home Owner’s Association dues; ‘any special assessments…’and the regular trustee fee.

The Free and Clear Property EHTrust Transfer™

 The Free-and-Clear Property Model:  When there is no mortgage on the property, the function of the EHTrust Transfer™ is the same as explained above,  except that the  aggregate lease payment is paid to the settlor beneficiary by the collection and disbursement service, minus moneys being impounded for property tax and insurance, which is forwarded to the the proper entities.

  • In the case of a free-and-clear property, the owner-of-record may opt to refinance the property prior to the trust’s set-up, thereby passing-on all payment responsibilities to the resident beneficiary (via the collection service), and putting all loan proceeds in his/her own pocket (‘tax-free…’until the eventual retirement of the loan upon sale o the property).

In Creating the R.E. Investor’s Multiple-Beneficiary
ODWM EHTrust Transfer™…

  • The Open Door Wealth Management (ODWM) EHTrust Transfer™ is of maximum value in instances where a real estate investor would opt to acquire ownership benefits a property, while having minimal or no cash to outlay; and with minimal or no particular credit strength.  In such cases, an titled owner of real estate, attempting to dispose of it, would create an EHTrust Transfer™ in the same manner as discussed above; however, in this case, the named Co-Beneficiary is the real estate investor (“buyer” as Investor Beneficiary).
  • In this variation of the ODWM EHTrust Transfer™, the Investor Co-Beneficiary, with its mutual Power-of-Direction over the trustee and control of the property, is free to either lease the property out, sell it, refinance it in his own name or… to bring a third beneficiary (‘i.e., a Resident Co-Beneficiary) into the trust, which party may or may not have great credit or enough cash for a standard down-payment: but who will agrees to live in, and take care of, the property while covering all of its on-going expenses and responsibilities (‘i.e., as would any homeowner).
  • In the foregoing scenario, the trust’s respective beneficiary interests and shares of net-proceeds upon termination and sale, or other disposition, can be apportioned in any percentages the party’s would agree on; however, most such transactions are designed as a tpe of “Equity Share” arrangement between the Investor Beneficiary and the Resident Beneficiary.  In other words, the parties agree at inception that following retirement of any mortgage and all other costs of disposition, each of them will first receive a full refund of any non-recurring closing costs they may have paid-in at the transaction’s beginning (i.e., ‘escrow fees, title insurance, tax and hazard insurance pro-rations, Realtor® fees, ancillary charges assessed by the Investor, etc.).
  • Following payment of this amount (‘each beneficiary’s initial contribution); then, remaining proceeds are proportionately paid-out with respect to each beneficiary’s percentage of beneficiary-interest having been held in the trust.
  • Note here that any number of beneficiaries may be named in an EHTrust Transfer™, ‘although we suggest not exceeding nine or ten (i.e., ‘relative to possible compromise of Securities and Exchange Commission regulations concerning investment offerings)