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Updated over 7 years ago on . Most recent reply

User Stats

100
Posts
37
Votes
David Roque
  • Investor
  • San Diego, CA
37
Votes |
100
Posts

Wrap Around Mortgage 16 units

David Roque
  • Investor
  • San Diego, CA
Posted

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.  

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