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Updated almost 9 years ago,
Corporation getting out of a hard money loan.
So, I live in Alabama, own and run a medium size rehab/remodel company.
Found a house that is good pickings for a flip. Purchase price is 47k with around 25k of rehab. Using a hard money lender with 20% down. 12% interest only payments with 5 points.
House is in the USDA rural area, and I plan to offer 5k towards closing. List price is 120k
Its a 9 month term.
I have done my homework, feel good about the area and the price.
However, I like a back door, or Plan B for the OS moments. Given that I live in Alabama and have to use some form of a corporate entity, for this lender. I had looked into a Helo Loan, from the bank that I use. But it is a personal product, and you have to pay off a first loan, and if the loan is the company name, I couldn't use it.
Thoughts, options?