Does a portfolio loan typically have a due on sale clause?

6 Replies

I am strategizing on ways to acquire a new property. Here is the lay out. The property is a multi-family with an asking price of about 80K. The rents are currently $800 for one unit and $630 for the second unit, both units are occupied. The taxes are about $3,000 per year. The owner stated that three properties in different cities are on one loan. I am wondering if I can (1) assume the loan aka take over the payments and pay the owner a lump sum in addition. (2) Maybe I’m reaching, ask the owner to do some seller financing. Or (3) something else creative that I am not aware of to allow both of us to have a win.

Ps: This will be a hold for my team.

I thank you in advance.

Depends on type of mortgage loan many banks don’t transfer loans.

@Hutcherson Yearwood , this property should be able to be broken out from the larger loan pretty easily. That's usually written into these kinds of things.

Loan assumption is another issue altogether. That is typically only done with commercial loans. This being a 2-family and part of a larger package...who knows. Worth asking the current lender if they would consider this.

You should definitely consider owner-financing. Never hurts to ask.

Have you considered making an offer for all three properties?

I would call My lender Bob Forbes! He's been at this for over 25 Years, and his company lends in all 50 states. His website is

Jaysen Medhurst, I have not considered all three properties only because two of the properties are so far away I think I would only be doing a dis service to the families in them.  

@Hutcherson Yearwood , it's worth considering. If you're serious about investing, you want them to be under a property manager anyway.

Thanks again Jaysen,

Your advice will make more sense for me later as I grow the business. My m.o. is to “learn how to work the register before I place someone else in charge of it”. I am still learning and improving systems as we move forward. 

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