The "punishment", and its really a penalty not a punishment, is to have the loan called due.Perhaps James' lawyer is saying that by violating the due on sale clause you have committed fraud.

Our economy is very strong and it certainly differs a bit from what its doing in the states.

It's taken awhile to figure out what path I wanted to venture down and after much thought and consideration, I've committed to becoming a real estate investor.

Strong preference for properties that are close to the light rail expansion projects that are currently being finalized in Houston.Hopefully the properties are cash flow positive, but I am willing to go underwater since I am expecting at least 10% annual appreciation over 5 years.Close in properties are very difficult to find (and lock).

I would strongly recommend the insurance for a touchy, tempermantal purchase like this because it seems to have paid for itself for me.

However, 'if you claim ownership of something you do not actually own and attempt to transfer it in exchange for something of value, you have commited fraud and have been unjustly enriched.

I was thinking, do a market analysis for the area, finding several comps and getting a strong idea of what the house will sell for ARV, and find out the average time it takes for a home to sell in the specific area.

And other things such as: Is you credit strong, how are your reserves, are the reserves seasoned, do you hold assets, do you have any MTG lates in the last 18 Months, have you declared bankruptcy in the last two years, and anything else that may help!

I am committed to the rental business long term, but I wouldn't do a deal like that.Mike

So just have them do it for a small fee (like paying for the gas cost) so that you get strong numbers, I personally don't like going be the net when it comes to some things!