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In an agreement with a seller, who is to create a Trust for their home to be held In. A Trust holding equity and legal title with a trustee of the Trust.
2nd Step is we identify a renter or would be home purchaser to lease the property from the Land Trust. In exchange for rents on the property. The Trust allows via the Trust contract, Assignment of Beneficiaries, Beneficiary Assignments and a special lease agreement, allows the lessor in a triple net lease to take certain tax deductions like interest on the mortgage and property taxes. In addition the lessee who leases from the Trust Property can also participate in equity appreciation and principal reduction, in addition to other benefits of home ownership.
What we do is locate HOMES in good areas with with pools and jacuzzis in most cases and lease out the rooms via a special lease agreement designed to work with our Land Trust. Let say we had a property in a Land Trust with 5 bedroom and 4 baths. 1 of the Bedrooms is the master bedroom with 400 sq ft, another 2 rooms located next to each other contain 250 sq ft and another 2nd set of rooms with 240 sq ft for a total of 890 sq ft total bedroom space. We partition off each unit of room(s) into its percentage of the total bedroom space in the home. The Master Bedroom is 45%, the 1st set of rooms with 250 sq ft is 28% and the 3rd set of rooms with 240 sq ft is 27% of the total square footage of 890 sq ft which is 100%.
Depending on your choice of rooms, that percentage is what your ownership of the home will in percentages and is the Residents piece of the whole pie in the home which is inside of a Land Trust.
In the above example the homes range in price of $500,000 to 1-1/2 Million with 3000-4500 sq ft in most cases. Imagine living in a big home with lots of common area compared to that common area you have in your traditional $2500 a month rental. Isn't it better to have 240 square feet in a private bedroom with a private pool and jacuzzi and another 3000 square feet of privacy in common area in the form of an large entertainment room, living room/great room along next to a giant kitchen with a center work station and large formal dining area and perhaps a few fireplaces. Let me give you an idea of our pricing.
Let say the entire home lease is $7500 per month by purchasing the Beneficial Interest of the entire home and you have chosen your bedroom(s) space, which is 28% of all bedroom(s) space available. Then your share of the monthly Investment in our home is $2100 per month. For $2100 a month you have your own bedroom(s) which include the special income tax deductions and potential of equity appreciation et al. The master bedroom is 45% and $3375 and the 2nd set of bedroom(s) is 27% and $2025. So each Resident Beneficiary decides on the room(s) which correlates with the percentage of Beneficial Interest in the Trust Property which determines your monthly Lease Investment.
For the Settlors (sellers) we offer monthly interest paid on your equity held in the property under a land trust agreement. The held equity can be insured by holding certain positions in the equity markets in the case of a drastic and severe downturn in real estate, in which the equity of the seller would be in jeopardy. That is another reason to do business with us, to insure your investment of time and money in your home and our business with all parties. We can also back up the equity with equity from our company as collateral and used only as collateral to secure the equity hold by the seller(s).
Lets get together for a meeting to answer your questions and get your started with Gratuite Lavie Resort Living.