All Forum Posts by: Hind R.

@Caroline Gerardo Thanks for your frank input.

@Greg H. Thanks!

Does utilizing a land trust for each property help minimize the risk of an institutional lender executing a "due on sale" clause? Technically the property is in a trust and the trust has been sold not the property. Or is this strategy just nonsense shared by the online real estate "guru's".

@Aaron Gordy @Eliott Elias and others thanks for the input. Can you recommend law firms here or via DM? Clearly an attorney in TX experienced with these types of transactions is critical to their success.

Also have you found any good software to manage all the moving parts of this type of transaction or are you just using excel to analyze the numbers? I'm fine with excel just wondering if there is something better out there especially if I develop a repeatable strategy and do multiple of these deals in TX. I haven't found any software online other that excel templates created by others that don't work.

Finally, so you all know, I'm not stuck in analysis paralysis. I just think it's prudent to try to think thru all the positive and negative paths/outcomes of a unique financial strategy before executing it. I also believe it's important to be in control of as much of the situation as possible. I don't want anyone else (including a bankruptcy court) to have leverage to tell me what I have to do or unwind my transaction or ruin it's economics.

Thanks for all of the responses.

I'm researching the concept of a wrap-around and trying to understand risk by playing out all the scenarios since I may do several similar deals. I'm really uncomfortable with the possibility of seller BK down the road. Realistically I think I would need to be prepared to refi the existing mortgage at today's much higher rates. This would likely wipe out positive monthly cash flow in the near term (in the scenarios I'm looking at).

I'm researching doing a wraparound deal in TX. I don't have a lawyer yet, but I already have two pages of questions before wading into something that is new, risky, and unknown territory for me. The question that just popped into my head as I'm calling it a night is: "what happens to my seller's first mortgage if my seller files for bankruptcy at some point in the future after our transaction and before the first mortgage has been paid off?"

I will hire a TX based real estate law firm before spending much more time on this, but I'm curious if anyone has experience with a seller who has gone into bankruptcy after you wrapped their loan in TX or any other state.