All Forum Posts by: Carolina Lau

@ Chris Davidson Thanks for the good ideas. I looked into what a wrap is. I also read through the loan agreement. It looks like there are clauses that prevent the transfer of any collateral and the transfer of equity interest of the borrower, except perhaps with the express agreement of the Lender. So, maybe it maybe it not possible to do a wrap or the sale of the LLC since any transfers require the consent of the Lender and the Lender has already denied the assumption of the loan by a buyer. I will still reach out to a local title attorney to ask.

I have a small portfolio of houses I'm interested in selling in Jackson, MS. I have a commercial loan -- 30 year fixed at 4.625%. The owner of the loan is not willing to do an assignment. So a prospective buyer suggested a subject-to deal where the title moves to the buyer's LLC. The loan remains under my LLC, but the buyer makes the payments. I'm trying to educate myself on this way of financing a deal. What are the pluses, minuses and potential pitfalls?

Thanks, Ned!  Excited to be part of the BP community.  If you have a rental and a tenant stops paying, you are on the hook for the debt service and for the legal costs to evict, if it comes to that.  In a sandwich lease option, isn't your downside the payments to the seller until you can replace the tenant?  What am I overlooking?

Informal poll — Are you successfully doing sandwich leases?  What area of the country?