How to transfer or wholesale property and get by Fincen regs, and make some extra money as well.
How to wholesale property or transfer property unreported by FinCEN:
Assignments are not reportable because you sold the contract, not the property. The Owner of Record (in most cases) and the Buyer (in most cases).
The owner of record transfers to a land trust (they have to report or be reported by the title company in most cases anyway with the sale). You then buy, double close, or assign the beneficial interest of the land trust from the original beneficial interest to you or your assignee (a non-reported transaction). Then the owner of record (grantor) assigns his appointment of the trustee to you or your buyer. All this happens simultaneously when the owner is paid. But your concern is no longer what your assignee/Buyer does after he owns the trust.
Now, this is our opinion (has not been tested in court, these are very new and onerous regulations, and this information is for entertainment purposes only, use at your own risk). There should be no transfer tax due on the first step because this is a non-arms-length transfer, i.e., grantor to themselves (the trust/trustee). There is no transfer tax due when you transfer paperwork, i.e., the contract or trustee. The beneficial interest is reported on the original transfer when the owner puts the property into the trust, which their reporting happens either way. Then the beneficial interest is transferred to the subsequent buyer (a non-reported transaction).
Now, doing it this way, the owner of record gets reported all the time, as they have when they sell a property. Now, as successor trustee or beneficial owner, neither has any more reporting requirements. Doing any sale or purchase this way protects your privacy and may, depending on your state, save any or all transfer tax and even title insurance costs, which should, depending on your or your buyer’s level of comfort, be eliminated.
All legal (has not been tested in court, these are very new and onerous regulations, and this information is for entertainment purposes only, use at your own risk).
*** Tax avoidance and reporting avoidance are legal. Tax and reporting evasion are not!
*** The idiot criminals in government should know they already have this info on (for) 1099 forms as well as the CTA.
Shaking my head, I’ve spent tens of thousands each year on privacy so they, meaning the government and creditors, cannot just get your info willingly.
Ask any attorney or accountant; they will say I am wrong, but attorneys and accountants are taught to fall in line, do as they are told, and protect themselves and their licenses long before protecting you.
Use this at your own risk or any version thereof.
