With the ongoing crisis in most real estate markets, creating value continues to be more difficult than ever before.
Simply rehabbing a house might involve one person buying the property, another handling the rehab, another funding most of the rehab, and, eventually an end-buyer taking over the property for occupancy or leasing out.
Each of these persons has a different financial interest.
The buyer wants purchase and personal capital protected from new liens and ease of taking possession if the rehab goes sour.
The rehabber wants to be sure to receive the proper share of profit on resale and to have the ability to attract construction funding.
The funder wants to be sure that loan proceeds are properly applied, sales proceeds first payoff the loan, and that there are no unauthorized liens or transfers until the final sale.
If the end buyer is a landlord who leases out the property, it may be interested in privacy and a degree of asset protection.
If the end buyer is an owner occupant, it may be interested in proper title for estate planning and probate avoidance purposes.
All of these differing financial interests can be resolved using a properly structured trust with an independent title holding trustee. THSC is likely the only, specially structured nonprofit mutual benefit corporation with the legal sophistication to hold title and safely protect multiple financial interests in creative transactions such as these.