1. FCH Trust Alternative

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

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

4. Types of Financing:
Bank Financing
Private Financing
Seller Financing

5. 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

6. 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

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

8. 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

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

10. 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

11. 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

12. 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!

13. 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

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

15. 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

16. 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!

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

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

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

20. Consult With Your Local Attorney

21. Q&A: