The due on sale clause simply gives the lender the RIGHT to call the loan due upon transfer of title.The exceptions to calling the loan due in the Garn St Germain Act are below....See http://www.law.cornell.edu/uscode/text/12/1701j-3(d)Exemption of specified transfers or dispositions With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—(1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;(2) the creation of a purchase money security interest for household appliances;(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;(4) the granting of a leasehold interest of three years or less not containing an option to purchase;(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or(9) any other transfer or disposition described in regulations prescribed by the FederalHome Loan Bank Board.

Investing with others will be cleaner with a multi-member LLC and probably originating a note/mortgage as the security instrument for your investors.

What do I show to the new 1st lender prior to-or at closing to show what skin I have in the game (instrument such as a letter, a promissory note).

They will look out for your best interest, provide insight, and be instrumental in assisting you in producing an accurate pro forma.

They probably don't know much about real estate investing other than debt instruments that are available.

Of course this works best on a busy street corner in a nice size parking lot.People invest in music royalties. 

Gone is the stinky movie theater, the bead shops, the cheap T-shirt shops, the used music store.

I decided to keep him. but..because of he's loud music and he's bad behiver, I already lost a good payer tenant.

Hey @Patrick Green First, the process could be explained in these simple steps:Step 1: Market to motivated sellers Step 2: Sign purchase contract with the seller Step 3: Find cash buyerStep 4: Sign contract with cash buyer for a higher price and collect 2k deposit Step5: Close Transaction via Assignment or Double Closing and Collect your checkFor a wholesaler the contract is an extreme important instrument to structure a wholesale deal.

Technically a mortgage is a security instrument for promissory note.