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Updated 20 days ago,
Due on sales clause...Has anyone experienced this?
Hey community! So I am starting out in real estate. I am partnering up with a good friend of mine. We plan on creating an llc. However, from my research it seems as though getting financed for a property with an llc that shows no income can be difficult. I've seen alot of people say to just go through the conventional lending, and then quitdeed claim it into the llc. BUT I have also heard that it could trigger a due on sales clause, bringing the note fully due at any moment. So I have a few questions I wanted to asked this well educated community. Has anyone ever seen a due on sales clause trigger from an event like this? Also is this the way we should go? Or should we just establish our LLC and get financing through a DSCR lender? We eventually plan on adding more properties and its not whether we should or should not create an llc, I believe we are set on it. But being our first investment we are just unsure which is most beneficial to get a loan.
Or perhaps I am not considering other options, so I am seeking help from this wonderful community. Thank you in advance!