All Forum Posts by: Cecil L. Russell

The simplest method to circumnavigate the due on sale clause is have the seller put the property into a land trust before you buy, and then transfer the trust to you. This means if you transfer ownership from the seller's name and into a trust, the lender will not be able to demand payment of the entire note. This falls under the Garn/St. Germain Act.

The Garn–St Germain Act is a federal law that allows lenders to enter into or enforce contracts, including mortgage agreements, that contain due-on-sale clauses even if a state’s constitution or laws, including their judicial decisions, prohibit them. However, the Garn–St Germain Act lists nine situations in which due-on-sale clauses are not enforceable, including some transfers that may be relevant to your estate plan. In the nine situations specified, lenders may not enforce due-on-sale provisions in real property loans “secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home.”

If you are interested and want to know exactly what the law says, as applicable to you, you can read it here,
https://www.law.cornell.edu/us...

As a new investor myself, residing in Amarillo, I have conducted research and analysis of the industry. In my opinion, opting for 'Subject To' or 'Lease Options' through Owner Financing represents the most lucrative investment strategy. However, acquiring sufficient information to execute such transactions poses a significant challenge.

Article: LLC Operating Agreement Wyoming | The Complete Guide (llcbuddy.com)

The only company that I am aware of that sets up LLC's primarily in Wyoming is
https://www.primecorporateserv...