Posted by JPiper on December 16, 2000 at 10:25:22:
In this situation evidently there is existing financing. The idea would be to take title subject to that financing (that is, you take over the loan informally and make the payments on it).
The problem with this is that this action will trigger the due on sale clause that probably exists in the note and security instrument. In order to avoid this one method is to have the seller deed the property into a trust…then assign the beneficial interest in the trust over to you. This still triggers the DOS clause, but the action is out of the sight of the lender.
You would probably want to have a different trust for each one of these that you did. The good news is that you don’t need an attorney to write each one up…instead you can buy Bill Bronchick’s land trust course which will tell you how to do it and provide the forms to do it with. The cost would be much less than the cost of an attorney AND it’s a one time expense.
I don’t put EVERY deal into a land trust. But I do put alot of them into one…the ones where I have due on sale concerns and many of the ones that I hold. If I’m doing a flip or rehab many times I don’t.
New investor tips? Read the newsgroup and all the how to articles. You’ll find more tips than you ever dreamed of.