Most likely the lease is requiring property insurance (this will cover Tenant's fixtures and personal property -- Landlord should be carrying property insurance on the structure, unless Tenant is occupying 100% of the building) and liability insurance (this covers slip and fall accidents and other similar problems).

Here's a great article by Jack Miller which explains why NOT a business line of credit --It's Not What You Pay, It's How You Pay For It6/1/2011 8:22:30 PM by Jackie Lange Different States treat debt obligations differently; so borrowing money to buy houses carries different levels of risk associated with financing.

. $600/year for a duplex may be just about right, but I agree he should double-check how much coverage he is carrying.

You're expecting them to carry the note and they don't have any capacity to pay for the property.

If OWC, what is % rate, % down, and length of time to carry?

They are even putting them into the Kindle so you can carry a whole library around with you.

They are not illegal, but as Bryan pointed out, they do give the lender the right to utilize the due on sales clause, though I have yet to hear of one case that clause has been executed.The important step in such a transaction is that you either have the cash to pay off the loan, the ability to refi if the DOS was every carried out, or better yet, disclose ahead of time.

Also if it has been on the market a long time then that is the fault of the listing broker/agent.It is inevitable that if a listing broker/agent does not control the seller from the get go then ultimately the broker/agent will be blamed later on for giving in to the sellers demands.You have to educate them upfront about real value to get it sold in a timely manner.If they won't do that you move onto the next.The last thing you want to be known for is taking overpriced listings.Brokers/agents won't want to be on your list as all you carry is overpriced product and have built up the sellers expectations so unrealistically that any potential buyer will be too far apart from the seller in negotiations to do a deal.

And if you let your emotions blow the deal and have to start over, the carry costs while you re-market, (ie taxes, insurance, water, sewer, electric, interest, heat if a cold climate) and wait to close, will exceed what you offer them to take the deal.

Judge Learned Hand came down with a decision DECADES ago that stated it is the right/obligation of every taxpayer to arrange his finances in a way to pay the least amount of taxes possible (paraphrased).This ability has definitely helped in wealth creation for me and others.It is crazy that the tax burden continues to be carried by fewer and fewer people.