Land Trust
If I choose to not use a land trust to buy a property subject -to will the lender call the loan due?
Or maybe this is a better way to put it, if I go without the landtrust when I buy subject to, how much more likely is the lender to call it due?
JB
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jbinvestor,
)
Glad to meet you! (just wanted to sound like John
I use land trust and never have had a loan called due, in fact a lot of people do not use a trust and never have had a loan called due.
A topic that seems to be always discussed here is the DOS clause and not once have I heard anybody that made their payments on time had their loan called.
I have started calling the DOS clause the Y2K of investing.
Keep your laon current and dont worry.
Rob Carroll
Anderson Investing
Rob,
Sounded just like me, outstanding job.
John $Cash$ Locke
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ramawalker,
PS: You can use an LLC without problems.
John $Cash$ Locke
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Rodney,
My preference is to hold no more than 5 properties in one LLC.
John $Cash$ Locke
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sub2 is simply another method of aquiring property. there are numerous ways to buy houses and make alot of money. which method is best is up to you.
if you have no problem buying houses conventional or with cash and have made alot of money doing it then good for you. you dont have to buy properties in a way you dont want. if your successful doing it one way and feel that is the right way then keep it up.
i buy houses creativly because i have to. i am young and do not have the credit available to obtain financing traditionly. not only is this a cure for me to be able to buy properties, but it also takes alot of the risk out of personally gauranteeing a loan, or having a family member have to co-sign a loan which im just not comfortable with doing out of respect for them. im not saying im not liable to make those payments but it just makes it alot easier and less risky for me.
LarryNut is exactly right about the lawyer bit. when i first started out i approached about 8 lawyers who were all old school traditional lawyers who never had even heard of sub2, but they all told me it was illegal or some sort of infomercial scam and that there is no way to make fast money in this world. they told me to become a realtor or go to school to become one of them lol. even though they had no knowledge of the subject. like larry said they just want to stick to what they know and instead of admitting that they are wrong or unknowledgable about it they tell you its illegal.
to each his own, do what your comfortable with and what works for you.
Rodney,
When the powers to be from your neck of the woods wanted to talk about Subject To investing they contacted me.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=623
Since I had nothing to hide in the way I conduct business or my students do theirs, there was no problem in speaking with them as you will see in the above article.
I have many testimonial letters from famlies who had nowhere else to turn except bankruptcy, runied credit, a property they wanted out of or needed some moving money to start over again and many other problems that were resolved by my purchasing their property Subject To.
I have always considered it a win/win situation for everyone involved even the lender who did not have to spend thousands of dollars to foreclose on a property from good folks who needed some help.
The way I look at it, if it were not for Subject To investors many, many properties would have gone back to the lenders thereby causing higher interest rates, higher points charged for loans, etc., do to the foreclosed on properties. This loss of money is passed on to all of us in one form or another.
Rodney what I would say to you is that you should stay away from any form of creative real estate investing as I believe your personal convictions would stand in your way from what you have expressed in your posts.
John $Cash$ Locke
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