Account Closed : Another reason to take a close look at the note and dot ... take a look at Q&A 5 at Due on Sale in Both Note and DOT, if the DOS clause isn't specifically stated in BOTH the note and dot it is unenforceable ... wouldn't that be a big pill for the quick on the DOS trigger lender to swallow.

Remember, you can sell your rental any time you want (at least list it) in hopes to sell it for the same or more...If your Single Family Rental investment happens to appreciate over time, not only do you get to cash in on the equity that the tenant paid (mortgage), cash in on the monthly cash flow (balance left over from mortgage) BUT you collect the extra $ from the appreciation of the sale....Buy it for $50,000.... 5 years later property is worth $65,000... that extra $15k goes right in to your pocket... along with what you collected monthly and the principle reduction the tenant gladly paid for you!

So look for someone you can connect with that works out for your situation.2) It is a reduction of your basis in the property.

Randy Advantages of Using a Revocable Land Trust 1.Avoids property being probated (out of court transfer upon death of beneficiary) 2.Ease of Transferability 3.Judgments do not attach to the property 4.No Partition (avoids spouse’s “forced share†sale buyout upon divorce) 5.Easier management with multiple owners (multiple owners do not have to sign docs) 6.No costs upon transferring beneficiary 7.No registered agent needed 8.Legal and Equitable property interest in trustee’s name 9.Income and Expense conduit, not a business with tax consequences 10.No tax return to file (pass thru entity) 11.Trustee has no personal liability 12.No annual fees like other entities, if trustee is an individual or friend 13.Estate planning – successor beneficiaries 14.Less expense in grantor creating trust over entity 15.Avoids the due on sale clause 16.Privacy of ownership – Helps Avoid Identity Theft of your name 17.Keep sales price private 18.Able to fracture interests of multiple owners w/o being partners 19.Ease of linkage to other asset protection entities 20.Non-judicial repossessions of real estate sold on installment contract 21.1099 not required for transfers (personal property not subject to real estate regulations) 22.Ease of operating across state lines 23.Ability to insert poison pills 24.Lots of case law to support land trust law 25.Many attorneys do not study this section of the law – not profitable for them 26.No recordation of the Trust Agreement 27.To avoid “seasoning†problems (secondary market rules of ownership) 28.To save title insurance premiums (Trustee-insured-remains the same) 29.Good negotiating technique in the sale or purchase of property (Disney World used trusts to acquire land prior to construction to avoid price escalation) 30.To provide non-recourse financing 31.Lowering of real estate taxes (prevents re-assessment) 32.Avoids state regulations that apply to corporations and LLC’s As you can see, Land Trusts are a wonderful tool for you to hide your assets, avoid real estate tax increases, privatize your sales transactions, avoid probate and use for many other benefits.

But without a principle reduction, people who are underwater won't be able to refi.Sorry, but I just do not accept that people who bought houses they cannot afford, or could only afford based on a teaser rate, or bought with liar loans betting on raises or appreciation to come should somehow be allowed to have part of their debt discarded and allowed to stay in those houses.

I was able to get price reductions for my client because of it.

We are already starting to see the reduction of PMI, more low down loans, and as rates creep up and less super strong borrowers look to buy houses you will see banks need to lend capital.

The interesting thing about this deal was that the numbers didn't work, until the seller agreed to bring 9k in a principle reduction payment in order to reduce the remaining loan amount.  

I get constant emails from realtor that say "price reduction or new price."

When you sell the note, you'll hopefully have a gain, your purchase price is your basis, if you buy with a 25% discount, then 25% of the annual principal reduction is regular income on the investment.