They will be in default if they or an immediate family member moves in.4.

There's also a market for him to sell the loan if you default, which might give him some piece of mind that he wouldn't have to go through the foreclosure to recoup his investment.You could also find another investor to in with you to get to the 20%.  

In NJ by law if over 1 year they do have right to renew lease if they are not defaulting.

But the buyer wants to build on it and develop it as soon as we close.I want to be insured in case the buyer defaults on payments.

A truism:  Businesses exist to make money.This warranty company is making money, which by default means that the owners of these policies are paying in more money than they are getting out in repairs. 

In the event of a default where if you did have to take back the property, you can simply resell it and get the equity spread or even keep the property for yourself which you essentially purchased at a discount. 

Other lenders are at 5.5% and up so magic is to find a seller at 6.0 cap rate when you get great credit tenant at 5.0% rate for 100 basis point spread and hopefully rental increase built in.The large NNN lenders do not want mom and pop or small franchisee because most times the quality is trash so you are buying the location and the dirt not the lease and the tenant for any value.BBB- or better investment grade Standard and Poor's data over 50 years has about a less than 1% default rate!

Turns out Propstream / Property Radar don't have eviction filters anyways so out of state is the winner by default :)

Then later transfer title to an LLC which is not on the mortgage.in your security instruments there is a chapter on EVENTS OF DEFAULT Alienation is just one of them.  

Also https://www.reintn.net/Default... is also a fantastic group with alot of meetups and great education as well!