Buying property – “due on sale” bank clause

[allanjones]

Someone told me that I could buy a property “subject to” the existing loan. That the seller could just deed the property to me and I could take over the payments. Is this legal and what will the bank do when they find out? What about the “due on sale” clause? Can anyone help me on this. It sounds like an incredible way to buy property, but I don’t particularly want to go to jail.

[jimlanger]

You are right – buying properties “subject to” is an amazing way to invest. I just started doing it 4 months ago and I already own 12 houses with positive cash flow plus I made between $4k and $10k upfront on everyone of them. Once you know how to structure the deals, the only trick is knowing what kind of lead to go after and how to market to them. It takes a little practice, but it’s really paying off and I’m finally getting serious about quitting my day job and doing this full time. And don’t worry about “due on sale” clauses, I work for a bank and they don’t foreclose on properties where the payments are being made – especially in this real estate market – they don’t need any more foreclosures. But don’t take my word for it, here’s a VERY long article on how to do deals like this. It was written by the guy that taught me. California Real Estate License Real Estate eNewsletter by Joe Crump