All Forum Posts by: David Roque

I am looking to acquire 16 units in California.  The owner is willing to do a wrap around mortgage AKA all inclusive trust deed.  I keep getting hammered by the listing agent regarding the pro/cons with the wrap around mortgage.  So the agent even mentioned doing a land contract.  The biggest sticking point is the due on sale clause.  

So the question is should I do wrap around for 2 years knowing that I will refinance soon once the property is stabilized?  Or take the chance and do a land contract to not record the transfer of title and hope due on sale is not triggered.  

Lastly, the property is held in a living trust, would it be possible to add my LLC to the trust as a beneficiary as this may or may not be a transfer of title?

Any good RE attorney in CA that can guide me?

Thank you for you responses and time.  

So I am looking at purchasing a 16 unit complex...will AITD work?  I am concerned with Due on Sale Clause.  

Would a Land Contract be ideal? I figure since the existing mortgage is from a community bank the will not hesitate to call the loan due.  Most have said that banks may not call the loan due but this is typically for residential (1-4 units).  

Dont be putting yourself in defeated mode. Knock on every bank's door, you never know a bank may say yes and assit you along. Talk to friends and family, even though they may not have the cash...they may know or refer you to someone that may have the cash. In short dont give up so easy, fight, claw, punch, scratch...if you do end up losing your EMD and cash you invested, you did so knowing you did all you could. Yet not all is lost, losing the money, really was more like $3800 lesson on how to be a better investor!

10 units is a big task...especially if you do not know what you are doing. 

Look for a Gap Lender...you may have to give up 50% of the profit. 
Lesson learned...
Worst case you lose EMD.

SEC...

Hello..I trying to set up a discussion/ coffee meeting to talk investing. You still interested?

Hi...would you be up to meeting? I am trying to set up several SD investors at a coffee meeting.

MF with 5.5 and 2.5 CoC...not to thrilling. You may find a better deal...7 cap perhaps.

In the end your money and your choice. I have no idea about office spaces, just giving my input on MF as I do have experience. 

MF with 5.5 and 2.5 CoC...not to thrilling. You may find a better deal...7 cap perhaps.

In the end your money and your choice. I have no idea about office spaces, just giving my input on MF as I do have experience.