Creative Financing — Am I Missing Something?

[Clay French]

I’ve been involved in real estate sales and investing in various capacities for the past 12 years. My family has 20 doors that we own, and my wife and I are wanting to start buying some separately for ourselves. Another investor buddy brought me a financing idea and I just can’t see a downside...

1. Find a home that is a great rental prospect but the owner just wants to get out from under it because they either don’t have the time or equity to sell it to a traditional buyer.

2. Write an offer for what is owed on the property with the seller agreeing to let an LLC take over the current mortgage.

The worst case scenario I can come up with is the bank finds out about the arrangement and exercises the acceleration clause on the note. Since I’m not guaranteeing anything personally, I could just let them foreclose and I’ve just lost some time, or I can refinance and move on with my life.

It can’t be this easy can it? What am I missing?