(This is part 2 of our Subject-To Real Estate Investing Course. Enjoy!)

Creative real estate investors have come to know and hate the “Due-On-Sale Clause”. With good reason, too: It gave mortgage lenders the legal right to be unreasonable in being able to extend their rights beyond what would have been possible without the aid of some foolish legislation known as the Garn-St. Germain Depository Institutions Act of 1982.

The Due-On-Sale Clause is one of the primary elements of risk when performing Subject-To real estate investment transactions. Frankly, that’s true not just of Subject-To but of any creative buying strategy.

Fortunately, that risk can be mitigated quite significantly. But you definitely need to understand the Due-On-Sale clause, so here’s a brief video lesson to cover it completely:

I hope that was helpful for you. Some other helpful links are:

Your questions or comments are welcomed below!

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