Purchase price: $305,000 Cash invested: $75,000 Sale price: $465,000 Horder house made beautiful again.....this was our 7th flip What made you interested in investing in this type of deal?

Hey @Keenan Patton,This deal looks solid with a projected $60K profit, $435K ARV, and a $13K assignment fee in Northern California.

I have not had an issue with the claw back scenario and if I did I would IMMEDIATELY begin the eviction process which I would then pursue relentlessly.But alas, some tenants use this trick after they have vacated your property. 

I had never heard of this.

Then I find articles like this. 

I think this arrangement is better than nothing or me taking her to court to only get the land back. 

Am I correct here, or does this exception mean something else entirely?

It’s always good advice for someone doing a 1031 to actually have their replacement property under contract when they sell the original property, but few actually do this.

This is what I am encountering, in the current Mortgage Industry.If you think you will go FHA, Conventional, FHA 203k, etc. and then Quit Claim the property, to a Corporate Entity, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

This is the cost of doing business.