XIX.SUBJECT TO/DUE-ON-SALE ACKNOWLEDGEMENT: IF CHECKED : ________________________________ Land Trust, as Buyer have entered in to a certain purchase and sales agreement date herewith, the parties fully understand, acknowledge and agree as follows: 1.Seller and Buyer are fully aware that the mortgage(s)/deeds of trust securing the property Described in Section I contain(s) provisions prohibiting the transfer of any interest in the property without satisfying the principal balance remaining on the underlying loans and/or obtaining the lender’s prior written consent (i.e., a “due-on-sale†clause), and that this transaction may violate said mortgage. a.Seller specifically understands that this loan will be paid on a monthly basis by buyer, but will not be assumed or paid off completely at this time, and that this loan and loan payments will remain in Seller’s name and may continue to appear on Seller’s credit report. 2.Seller and Buyer execute this disclosure form after having had the opportunity to seek legal counsel as to the legal and financial implications of the due-on-sale clause.

: Buyer have entered in to a certain purchase and sales agreement date herewith, the parties fully understand, acknowledge and agree as follows: 1.Seller and Buyer are fully aware that the mortgage(s)/deeds of trust securing the property Described in Section I contain(s) provisions prohibiting the transfer of any interest in the property without satisfying the principal balance remaining on the underlying loans and/or obtaining the lender’s prior written consent (i.e., a “due-on-sale” clause), and that this transaction may violate said mortgage. a.Seller specifically understands that this loan will be paid on a monthly basis by buyer, but will not be assumed or paid off completely at this time, and that this loan and loan payments will remain in Seller’s name and may continue to appear on Seller’s credit report. 2.Seller and Buyer execute this disclosure form after having had the opportunity to seek legal counsel as to the legal and financial implications of the due-on-sale clause.

There is a new law that prohibits landlords from collecting rent on any structure that does not have a COO stating otherwise.

I just called the town hall of the city I was going to place bandit signs in and they informed me that any type of bandit sign is prohibited.

(A sale payoff is different than a refinance payoff)2) Attach insurance to the property in "my" name.3) Make my mortgage payments with my name on the check.4) Record the Deed which gives Constructive Notice.As for disclosure here is my latest disclosure to the seller.Buyer have entered in to a certain Purchase and Sales Agreement date herewith, the parties fully understand, acknowledge and agree as follows: 1.Seller and Buyer are fully aware that the Mortgage(s)/Deeds of Trust securing the property Described in Section I contain(s) provisions prohibiting the transfer of any interest in the property without satisfying the principal balance remaining on the underlying Loan(s) and/or obtaining the Lender’s prior written consent (i.e., a “Due-on-Sale” Clause), and that this transaction may violate said Mortgage(s). 2.Seller specifically understands that the Loan Payment(s) will be paid on a monthly basis by Buyer, and that the Loan(s) will NOT be assumed or paid off completely at Closing, and that the Loan(s) and Loan Payments will remain in Seller’s name and may continue to appear on Seller’s credit report. 3.Seller and Buyer execute this disclosure form after having had the opportunity to seek legal counsel as to the legal and financial implications of the Due-on-Sale Clause included in the Mortgage(s)/Deed(s) of Trust.

Donald, this is absolutely not allowed and would be considered "prohibited transaction".

Since it is hard money, the self-directed IRA LLC would eart 5.5% interest.Question:  is this type of transaction prohibited or what are the things I need to make sure I have happen. 

Yeah I figured it would require some work initially to get it all set up, but if there isn't any weird law prohibiting it and the structure is already on the property it seems like it could be a nice way to get some extra cashflow!

LLC's are prohibitively expensive in my state (CA) and we want to use the trust to ensure income for our children in the future. 

@Jason JenningsThe following IRS link explains the solo 401k prohibited transaction rules. http://www.irs.gov/Retirement-Plans/Retirement-Pla...