What is an Equity Holding Trust™? - Gary Mialocq & Associates

The Equity Holding Trust™

What We Do

Via a unique documentation system that utilizes the (Illinois-type) title-holding land trust model, North American Realty Services (NARS) is able to provide the professional real estate community a truly exceptional and safe vehicle for acquiring, selling and dealing with single-family Real Estate (1 to 4 units)...without standard down-payment requirements, without a new loan, without credit applications and/or credit history issues. Owner-Carry financing can at last be accomplished safely and conveniently without undue lender compromise relative to contractual transfer and alienation admonitions (i.e., in regard to the "Due-on-Sale Clause": see Garn-St. Germain 1982, FDIRA, 12USC 1701-j-3).*

Understand that violating a lender's due-on-sale clause is never against the law (i.e., DOSC = A lender's warning that the property can be foreclosed upon and the loan called should it be sold or transferred without authorization). A violation of the DOSC merely compromises the lenders wishes and can result in termination of the mortgage and foreclosure on their security at the lender's discretion. In the event of such action, it would be sanctioned and fully supported by law (FDIRA 1982/12USC1701-j-3) except under certain circumstances, one being the placement of the property into an inter-vivos trust (such as in the land trust). It is important to clearly understand that placement of a mortgaged property into a land trust and leasing it out to an unrelated co-beneficiary is authorized (indirectly by non-prohibition) by law [the Garn-St. Germain Law]: FDIRA 1982/12USC1701-j-3.

The Equity Holding Trust™ is comprised of two forms --

1) the PACTrust™, typically involving only two parties a Settlor Beneficiary and a Resident Beneficiary (i.e., "seller" and "buyer"), and

2) the NEHTrust™, involving three beneficiaries: Settlor (seller), Investor (buyer), and Resident (co-buyer).

Overall, the Equity Holding Trust™encompasses a combination of documentation including, but not limited to:

1) the Land Trust,
2) an Assignment of Beneficiary Interest,
3) a Co-Beneficiary Agreement,
4) a Triple-Net Possessory (lease) Agreement, and
5) a Limited and Revocable Power of Attorney.

And through its various permutations, it effectively accomplishes the purpose and all the objectives of:

Lease Options,

Lease Purchases,

Contracts for Deed
Land Contracts,
Wrap-Around Mortgage schemes,
Equity Sharing and even wholesale "flipping" and assignments.

And it does all of this without undue and/or notorious due-on-sale compromise...and without the specific necessity for new financing, credit strength or large cash requirement (if any at all). We at NARS pride ourselves in saying that we teach investors how to: "...buy without credit; for nothing down and for nothing per-month." Likewise, we are well known for enabling Realtors to sell--with full commissions--'TO' people with minimal cash and credit; and 'FOR' people who may have little or no equity in their homes...or for those who may be faced with bankruptcy, divorce, short-sale, foreclosure, forfeiture, mandatory liquidation or worse.

The NARS Equity Holding Trust™model works exceedingly well for buyers, sellers, Realtors®, and investors alike. The various programs created and promoted by NARS have been employed successfully without legal incident or challenge with regard to IRS, lenders, or legal and accounting issues since the company's inception in 1984. NARS has, within the real estate sales and investment community, garnered a truly exceptional record and reputation for its professionalism and integrity, along with the integrity of the various Equity Holding Trust™ programs it promotes.

All NARS programs were specifically designed to enhance and protect all parties involved in any form of creative real estate financing, and to afford the most safety and least risk potential with regard to virtually any type of real estate letting, sale, transfer or acquisition. Through the use of the Equity Holding Trust(tm) ordinary cash and/or credit restrictions can be easily and comfortably dealt with, if not completely eliminated. A co-beneficiary owned Equity Holding Trust™ property is very solidly protected and shielded from actions associated with any party's: past bankruptcy; creditor claims and civil judgments; litigation in marital dissolution; Probate actions...and even state and federal income tax liens.

For more information about the Equity Holding Trust™, please browse through Bill Gatten's website's informational section and perhaps review the extensive "Articles" page. You may also opt to post related questions and comments on our very informative Discussion Board. For other inquiries regarding services and/or products, call toll-free:

1-800-828-0684

The North American Realty Services Equity Holdting Trust™

*A new, expedient and legally prudent transfer style
wherein interest in a Title-Holding Trust
is conveyed, versus involving the property's title".

For the Buyer (Homeowner or Investor)

All benefits of home-ownership without normal Down or Loan Qualifying

OWNERSHIP through a quiet assumption of ANY LOAN, with minimal due-on-sale compromise

INCOME TAX BENEFITS - All deductions for mortgage interest and property tax are yours.

LEGAL, SAFE AND QUIET - A "Subject-To," without the necessity of public notification, subterfuge, secrecy or "quiet" documentation

ASSET PROTECTION at its best (property protected best from creditor judgments, tax liens, and probate)

PROPERTY HIDDEN from actions in bankruptcy, marital dispute, and law suits

For the Seller (The Home Seller. Landlord or Investor)

Faster, simpler, and far Less costly disposition of the property

DISPOSITION COSTS CURTAILED -- Buyers, free of the "down payment burden," can pay ALL, or share-in most of, the closing-costs including RE commissions)

PRUDENT & MOST PROFITABLE - Eliminates the need for standard renting, leasing or optioning-out

EASY LANDLORDING - Eliminates costs of negative cash-flow, maintenance & vacancies

TAX DEFERMENT - A PACTrust™; transfer is a "contingent sale," possibly deferring capital gain for years. 1031 Like Kind Tax Deferred Exchange privileges can remain ntact

ASSET PROTECTION - The PACTrust™ may shield against tax-liens and creditor judgments

THE LOGICAL WAY OUT- A marvelous alternative to the Short-Sale or Foreclosure: wholly avoiding the lender approval process, and averting tax on debt-relief and major credit injury

For the Broker (Real Estate or Financing Professional)

Unlimited customers, perhaps wholly unseen and unavailable… until now

MORE COMMISSIONS - Clients needn't be turned away for: marginal or no credit; low, NO, or negative equity; self-employment; short job experience; or past financial failure (BK)

QUICKEST ESCROW - 3 weeks (comfortable); 2 weeks (common); 4 days (do-able)

LEGAL AND SAFE -A legally safer alternative to Wraps, Options, Land Contracts and Equity Shares (the same benefits, and then some…but without Due-on-Sale Clause compromise)

UNLIMITED BUYERS AND SELLERS - Countless ready buyers and properties await your call

HASSLE-FREE - NARS handles every detail: Buyer/Seller conferencing (all documentation from the Purchase Offer to final Escrow closing) and provision of the corporate trustee and payment collection and disbursement service. You can make the money and leave the paper work to us.