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Updated over 7 years ago on . Most recent reply
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Wrap Around Mortgage 16 units
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.