Subtos - Due on Sale Clause

[Hector Espinosa]

Hey guys been reading up on subtos and other type of real estate investment strategies. People like Pace Morby make it seem like there is zero chance whatsoever the due on sale clause would be triggered. I find this hard to believe. Curious on your experiences with doing subtos and general thoughts on this investment strategy. I have not done one of these but would like to in the near future. Feel free to drop your thoughts below. Thanks!! 

[Chris Seveney]

Quote from @Hector Espinosa:

Quote from @Chris Seveney:

@Hector Espinosa

We buy loans on the secondary market. We have a loan that was sold sub to and we did due on sale clause. Borrower / buyer flipping out telling attorney we can’t do this. Umm. Yes we can

Foreclosure is scheduled for February 6th.

 Hey Chris, from your perspective, what would you request from the buyer in order to avoid following through with the due on sale clause?

We would not request anything as we do not have any agreement with them and are not interested in a new agreement with them. For us its keep it simple, you had a contract and you need to understand the ramifications. 

The moment we start doing it for one not the other then we will get accused of something. Not worth it.