Updated over 10 years ago on .
Considering financing friend's first home
I have a friend who's looking to buy his first home who has no credit, no down payment, but a steady job and I told him once either one of us find us a good deal (under 80k ARV that I could get at
How should I go about this safely? Specifically, how should I collect the down payment? A separate loan? What if I charged the highest possible interest rate until I was able to pocket so much $ then we could refinance the arrangement at a lower interest rate? How would you do this?
Another issue, suppose we find something needing repairs and I don't have enough cash to fund them and sell him the home as-is, he wouldn't be able to refinance with an FHA loan until those repairs are made correct? What would you do if you wanted your cash back earlier? Sell the note? Is that a viable option? Do I put in the contract he must take care of the repairs himself before a certain date? Ideas? Thanks