FCH Trust Alternative

Goal : FCH Trust Alternative Provide Home Ownership For Clients Reduce Risk For Fuller Center

What We’ll Cover Today: Traditional Financing Options Pros Cons Alternative Step By Step Instructions

Types of Financing: Bank Financing Private Financing Seller Financing

Pros Of Traditional Financing: It’s What We Are Used To! People Understand It Lots Of Options Banks Mortgage Brokers Credit Unions Family Members Private Lenders

Cons Of Traditional Financing: Tough For Our Clients To Obtain Risk of Default Foreclosure Costly Time Consuming Loss of Control of Property Damage To Property

___ Lease with an Option to Buy? WHY? As A Seller, What’s BEST for FCH? ___ Seller Financing? ___ Lease with an Option to Buy? WHY?

FCH Trust Designed To Give Best Of Both ___ Seller Financing? As A Buyer, What’s BEST for You? ___ Seller Financing? ___ Lease with an Option to Buy? WHY? Pride of Ownership Tax Benefits FCH Trust Designed To Give Best Of Both

FCH Trust Alternative: Keep the Pro’s Reduce the Con’s Quick Easy Cost Effective

TRUSTS Basics 101 – 4 Parts Name Of Your Trust FCH 123 Ash Street Trust Trustee (Fuller Employee?) Beneficial Interest(s) (Owner(s) for IRS Purposes) Legal Description

The Fuller Center For Housing Of Louisville The Fuller Client Beneficiaries of The Trust: Beneficiary “A”: Entity Funding The Trust With The Property (i.e. The Seller) and/or Funding The Trust With $$$ Beneficiary “B”: This Is The Person Who Will Be Living In The Property The Fuller Center For Housing Of Louisville The Fuller Client

Roles of the Parties: Trustee (FCH): Obtain Insurance Get paid! Check on progress of Beneficiary “B”. Send notice to Beneficiary “B” if a problem arises. Take over responsibilities of Beneficiary “B” to protect the investment!

Beneficiary “A” (FCH): Fund The Trust Property and/or Money Roles Of The Parties: Beneficiary “A” (FCH): Fund The Trust Property and/or Money Beneficiary “B” (CLIENT): Pay Trustee Maintain the Property Enjoy Their New Home - Equivalent of PITI Payment

Over Time: Beneficiary “A” (FCH): Reduces Ownership Beneficiary “B” (CLIENT): Increases Ownership

You CANNOT Take Away Beneficiary “B”s Ownership If Default What If Beneficiary “B” Defaults? Trustee sends Beneficiary “B” 30 Day Notice of Default. Trustee Assumes Responsibility For Property. Trustee Has Ability To Sell Property. Trustee Entitled To Additional Fees As A Result Of Additional Work. Beneficiary “B”s Ownership Reduced As A Result Of Additional Fees Owed To Trustee You CANNOT Take Away Beneficiary “B”s Ownership If Default

NO Foreclosure Needed! What If Beneficiary “B” Defaults? Trustee sends Beneficiary “B” 30 Day Notice of Default. Trustee Assumes Responsibility For Property. Trustee Has Ability To Sell Property. Trustee Entitled To Additional Fees As A Result Of Additional Work. Beneficiary “B”s Ownership Reduced As A Result Of Additional Fees Owed To Trustee NO Foreclosure Needed!

Steps In The Process: Screen FCH Client. Prepare Trust. Execute Trust. Obtain Insurance. Deed Property To FCH Trust

Benefits Over Traditional Seller Financing: Client Builds Equity. Control Remains With FCH. Reduces Risks To FCH. Speeds Up Process Taking Property Back If Needed.

at 502-894-9200 or Harry@HarryBorders.com Contact Me at 502-894-9200 or Harry@HarryBorders.com For Draft Of Trust

Consult With Your Local Attorney

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