Due on Sale Clause...LLC in Texas

[Maceo D.]

Hello Everyone. I want to first start off with saying I am brand new here and new to investing. I did do a search for "Due on Sale Clause" and yielded 86 pages, so to be upfront, I really didn't want to read through that many topics if I didn't have to, =).

I figured I would go ahead and post a topic. So my question is more specific to situations in Texas and is multi-faceted:

1. Has anyone ever had or heard of the Due on Sale clause been executed other than back in the day for the reason it was brought to existence?
2. I just formed an LLC and have a lead on a property and the seller is not willing to do seller financing and wants to sell it. With that said, I, of course, want to have it owned by the LLC instead of me directly and most likely the loan would be in my personal name since it has the strong credit rating. How do you all handle this?
3. Is there a certain timeframe that I should allow to pass before I transfer from my personal name to the LLC?
4. Any additional advice you could lend that would apply to Texas?

Thanks in advance, I have already learned a great deal from several here by reading many different articles, so thanks for that as well.

[Sharon Tzib]

"That's the bad thing about the internet is that you will find just as many people saying do as you will saying don't do it"

Yes, Maceo, that's true for just about everything in real estate :) Bottom line, the decision will always come down to you and your personal risk tolerance. No one here is going to be able to tell you what to do or not to do.

You need to understand your goals and priorities, and then make the decision yourself based on the information you have gathered that's best for you.

If you do decide to "chance it," then do what other investors do and have a couple of exit strategies in place, like refi, selling, or paying it off all cash. Again, you're not going to go to jail, and you're not doing anything illegal, so if it ever did happen they called it due, just have a plan for how to handle it.