Subject to in California

[Don Alder-LaRue]

Hi everyone,

I'm considering purchasing a property "subject to" in California. The property has equity, and the rents are in line to pay PITI and still cash flow nicely. It needs some repair, and I have the money lined up to do that.

Here's my question.  The Due on Sale Clause...are lenders enforcing this in California or not?  My original mentor (whom I"m still friends with even though we haven't done a deal together in California in over 13 years) is adamant that I not pick up the property subject to.  He hasn't purchased a property subject to in California in decades.  I'd like more recent experiences with subject to and if the loan is getting called or not.   What are your recent experiences?

Many thanks and Best of luck to you all on your investments!

Buddy