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The reason why a land trust does not work under California law is because a beneficiary who exercises a right to control trust property (aka "power of appointment") is actually the trustee of the trust, and when a trustee and beneficary are the same person, the trust terminates and merges into the property of the beneficiary.
BotXXXXX XXXXXne, while your proposed business model may have some viability in Illinois or Massachusetts, it will fail in California.
Concerning a minimum amount of real estate sales sufficient to avoid the need to have a real estate license, California law has approved a "finder" fee, where an unlicensed individual introduces a buyer and seller (or landlord and tenant) to each other and then the finder exits the transaction. The finder's fee must be fixed at the time of the introduction, and not based upon whether or not the parties actually consumate a transaction. Otherwise, the finder is earning a sales commission, and that violates the real estate license laws.
Thus, at least two of the elements in your business model are problematic. Consequently, I don't see how you can make this work. But, then again, your description of the model is extremely simple -- almost as if it were self evident that the model is legal and something which is done routinely in California.
This leaves me at a bit of a disadvanage, because from my perspective, your model is legally impossible. The only thing I can think of at this point is that you are considering a business model developed in a different U.S. jurisdiction, and that the model is not viable for California.
If you have a citation to legal authority, or a treatise/white paper from a California law firm that demonstrates the model's viability, then I will be happy to review it and comment further.
Otherwise, my answer here must be that you will need a different strategy.
Please let me know if I can be of further assistance.
So, with that being said and knowing the two main goals we would like to achieve, 1) invest in CA. R.E. & 2) avoid having to pay the FTB Fees, if at all possible how would you recommend we proceed?
Please see reply to your answer.
There is no doubt in my mind that you are a true professional and I value your advice very highly. If you would just google set up a CA land trust and review a couple of the articles you would be able to see how one could become very confused. I appreciate your time and rate you for excellent service. It was definitely worth every penny I've paid
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