Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth.

However, currently the “subject too” and/or “wrap” transaction is always subject to the existing mortgage company exercising their legal rights to foreclose on the subject property based on the “Due On Sale Clause” which is contained in all mortgages and/or deeds of trust on real property.

I've been trying to analyze a "deal a day" for the last few weeks to gain some experience (in truth it's been more like 3 a week) One of them has really turned into an interesting case. I've gotten a lot of numbers on...

So I'm doing this mental exercise to see if there's a scenario that makes sense for someone to provide the capital for the down payment while I live in one unit.

Without a solid job/W-2 income, you're going to have to rely on the good graces of the seller and your negotiating skills.Be sure to exercise caution not to overleverage at this stage.

The trustee pulls a title report and notifies everyone of interest.The bank could exercise the Due on Sale clause.

If you refer back to your contracts/agreements with your tenant buyers, do the documents include clauses about -- a time frame for them to give notice of their decision in writing to you whether they exercise the option or not; your ability to transition them to a month-to-month tenant should they fail to exercise the option; your ability to market/list the property and offer it for sale to someone else; your ability to conduct showings, inspections, appraisals, and photograph the property prior to them moving out if they fail to exercise; etc., etc.If so, then your good. 

When the prospective tenant is ready to exercise the option to purchase, he will exercise his option to purchase from you and do a double closing where he never takes custody of the home but collects a check for his profit from the transaction.  

The lender holds the right to exercise this option, and there isn't anything you can do to stop it.The lenders however, tend to look the other way on these deals.

If she fails to exercise her option, the $10,000 option deposit is forfeited.