Avoid the due upon sale clause requirement legally using trusts. One of the most powerful things is wouldn’t you agree if you didn’t have to go to the bank and you didn’t have to qualify for a loan and you could actually buy real estate, wouldn’t that be awesome? And you don’t have to put up your credit report and you don’t have to pay a bunch of fees. The cost of the loan and all those things could be eliminated if you simply negotiate with the seller as I’ve shared with you and other tips and take over their existing financing on the property, take over the payments on the property.
While you can do that with a powerful thing called trusts, you see, trusts are one of the exemptions to the due upon sale clause. When the property is placed into trust, the lender is prohibited from calling the loan due, so even your own personal residence, when you place that into trust, guess what? The lender can’t call the loan due because of that exception in the law.
Imagine that you could take over somebody else’s trust and just continue to make the payments, I teach you how to do that. It’s a powerful thing. It begins on page one 48 of this amazing system called land trusts. If you’d like to learn more about that, simply go to streetsmartinvestor.com click on tools and click on land trusts and we’d be glad to share with you more about that. It’s a truly amazing thing that has made me huge profits.
Again, think if you do one house without going to the bank and qualify for a loan, think about 10 think about 20 think about a hundred. It’s just amazingly powerful. I’m going to make this caveat. If you agree to make the payments, if you tell the seller you’re going to make the payments, you absolutely, positively must make those payments. We’re not going to put our sellers at risk. We’re not going to put them in a position where they could get hurt. They’re giving you an amazing opportunity and amazing gift.
So we always want to treat that with reverence and thanked thankfulness and make sure that you do what you’re supposed to do when you take advantage of this powerful tool to be able to take over existing financing.