How to proceed with real estate trust in Boston

The first step in the process is to make sure that you have chosen the right entity. Please be aware that it is usual for banks to charge a higher interest rate on investment property than on an owner occupied residence. Also, many banks will not provide a mortgage when the property is held by certain types of trusts. By insisting on using a trust simply to avoid a higher interest rate, while another type of entity might be far more appropriate, you could be setting yourself up for disaster. Moreover, you must consider whether it is appropriate to use only one entity, rather than one for each property.

Once you have decided on the most appropriate entity, or entities, you should have a competent attorney draw up all of the necessary documents. These include not only the formation documents, such as the Declaration of Trust, but any necessary supporting documents that will serve to define each participant's duties, liabilities, and benefits. Once the documents are executed then, depending upon the type of entity your choose, there will be various filing requirements including filing with the appropriate Registry of Deeds once you purchase the property.

You should make an appointment to meet with a qualified attorney to discuss all of your goals and your questions and then work with your attorney to draft the best documents to meet your needs.