The Trust Selling System in itself is not just a trust:  it is instead an ownership transfer system that utilizes a trust at its basis.  It is a carefully constructed combination of documents that create a legal conveyance from one person to another of virtually all the benefits of a traditional home sale or purchase.  There are four basic documents that make up the Trust Selling System:  1) The Trust Agreement, 2) an Assignment of Beneficiary Interest, 3) a Beneficiary Agreement between parties, and 4) an Occupancy Agreement wherein the “Resident Beneficiary” (Buyer) is required to cover all recurring costs of ownership.

You don’t need to worry about all the paperwork.  We handle that for you.

So far we have discussed a 2 party trust, with the Settlor Beneficiary and the Resident Beneficiary, but we mentioned you can have several beneficiaries.  The Trust Selling System is actually comprised of 3 beneficiaries:  the two named above, and us as the “Investor Beneficiary”.  As the Investor Beneficiary, we locate both the Buyer and Seller, put the transaction together, handle all of the paperwork and closing, and stay in the transaction until the property is purchased from the trust by the Resident Beneficiary or sold to another party.  Since we have a vested interest in the transaction, we also guarantee the mortgage payments will be made to the lender.

Here is a summary of the steps involved in the transaction:

1.   We locate a Seller willing to leave their mortgage in place for a few years (depends on market conditions).  The existing mortgage provides added value for the Buyer.  Since a Buyer doesn’t have to qualify for a new loan, the Buyer is willing to pay more than a typical retail buyer would be willing to pay.  (NOTE:  You can also bring a property to us, but we would want you to do some "prescreening" for us to make sure the Seller would be willing to leave their existing mortgage in place for a while).  Each property will be different, so the payment required by the Buyer may vary by property, but it will typically be 5% to 10%.  Could be more if a Realtor is involved, or if the Seller is behind in their payments.

2.   We execute a Non-Exclusive Option Agreement with Seller that specifies terms for purchasing a beneficiary interest in a trust to be set up.  The Seller can continue marketing the property in any manner they want, our Option just gives us the right to purchase within a specified time period.  If the Seller sells the property before we exercise our Option, then our Option is terminated.

3.   We locate a Buyer that will purchase a portion of the beneficiary interest.  In return they will pay all costs for the transaction, will lease the property from the trust, and pay all maintenance and upkeep costs.  They will receive all the benefits of ownership.

4.   Plum Properties draws up all of the paperwork and schedules a closing where all the required documents are executed.

5.   As far as the Seller is concerned, the property has been “sold”, even though they still maintain a beneficiary interest.  All of the affairs of the property are handled by the trustee and the other beneficiaries, and the Seller doesn’t have to worry about making loan payments or paying for insurance, taxes, repairs, upkeep, or maintenance on the property.

6.   We monitor the real estate market for the best time, but typically the property will be refinanced by the Resident Beneficiary or sold in 5 – 10 years, thereby paying off the underlying loan and any equity the Seller had in the property.