"What's an All-Inclusive Trustee?" | Take it Up with Tony

“Tell me what is an all-inclusive trustee?”

An all-inclusive trustee is a fiduciary responsible for maintaining and managing the assets of the trust. The trustee must keep accurate records of all transactions, distributions, and investments made on behalf of the trust and handle any legal issues or disputes related to the trust. In addition, an all-inclusive trustee must also ensure that the trust's investments are managed in accordance with applicable law.  

This is a creative thing…

Okay so here is a scenario, you have a buyer that can’t qualify for a loan and you have a seller that is really desperate to sell a home. But what is great about this particular scenario is the seller has actually already purchased another house, they don’t need to qualify for another loan. So technically, they could rent out the house if they want, but why would they rent it out if it means the headaches of managing a tenant, possible roof replacement, etc. 

So here is what happens. We have a scenario called an all-inclusive trustee. It is a little bit tricky and you should always get legal advice on this. 

Basically, this allows the seller to be your bank. You write an offer to them (and typically you want to make it more enticing to them) by adding a little bit more to the amount.

So look at this. The loan is for $700,000, and the seller already has it with their bank, (Bank of America is an FHA loan), which by the way is assumable but in this particular case, we do not care. 

The bottom line is, he is selling it for $900,000, I am asking the buyer to pay $910,000, and ultimately he is going to put down 10%. He is going to have a loan with one seller that is going to pay the mortgage and that seller is paying his mortgage still and he is making a little bit of margin on the difference between what the loan amount is and what is willing to sell the property for. 

And ultimately now, the buyer is going to do this for a period of time and he’s going to gain equity in the house, he refinances out of it, and the seller is done.  


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