It's helpful to read the language to understand what does - and what doesn't work to legally avoid due-on-sale clauses.Exemption of specified transfers or dispositions: With respect to areal 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 transferor disposition described in regulations prescribed by the Federal Home Loan Bank Board.

Try not to do this too much or you'll burn your reputation.

Aside from losing your reputation, a borrower will absolutely kill you if this happens.All SDIRA companies say they like to work with real estate investors but some are more bureaucratic than others.

Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.

In RE, you credit is the one of the most important things you can have, IMO, your reputation comes first, then credit and money walk hand in hand.

But being an honest guy and building my reputation on that honesty, I feel that something "Shaddy" is going on.

You want to make sure you cover ALL your bases.Pay an attorney or have a reputable companies lease, make sure it is tailored to your state and not a generic form.It amazes me sometimes when we take over property from an owner/landlord how many loopholes they have left due to lack of documentation.

It can also be be attached for expenses incurred by the seller, like real estate commissions if a buyer simply walks.You can use a promissory note as an EMD, I have done so many times, but the circumsatances of the deal and your reputation as well as your ability to close will likely be consideredwhere you desire to use a note.While it is customary, it is not required, if that is acceptable to a seller.

Remember the audit is there but the big x factor is the lawsuits.E and O quotes higher rates for property management.Even if the landlord and or the tenant or BOTH are at fault they almost always blame the real estate brokerage.Sometimes it is merited and many other times it is not.So to run a property management company you have to be very meticulous with everything.Many investors are out of state so they will want turn key management (one stop shop).Rates will depend on what type of asset and the size.When you go to IREM there is different training for different classes and sizes.For example the scope and management on a 20 unit apartment building will be very different from a 200 unit complex.Generally for apartments fees are 8 to 10% for 50 units and below and 50 units and above 5 to 7 percent of gross rents.Retail can be as low as 4% management fee.Houses you will be competing with low ball agents who are having a hard time selling real estate.The problem for landlords is once the managers start closing real estate sales they could care less about the rental.This is just like many agents doing bpo's now and when sales pick up they will dump doing the reports fro 50 bucks.If you want to be serious about management do it full time.In my area for houses the most reputable companies charge about 10% plus half of first months rent for houses.It's not about what you charge but what you provide for that fee.You will get landlords trying to squeeze the management fee because they overpaid for the property.That is not your problem when taking on rental property.I don't do property management but one of my broker friends manages over 400 homes with 10 property managers for his company.He likes the residual income it provides.He also land sales off of it as a side benefit.

I had a reputable person come out who will put in the flashing for $150.