Help! First deal, making an offer, but need help!!!

[Cynthia Carrasco]

Ok here is the deal, I found a 1 bedroom 1 bath condo in foreclosure for $50,470 don't know the sq ft yet, but based on the 1 bedroom, 1 bath, on the same street within a few buildings, other condos are going for $85-88K. Obviously they are taking cash only offers because of it being a foreclosure. I would have to live in the property for at least a year before I can rent it out.

Now, I have a friend who wants to invest, so I want to use him for 30% down, giving him 12% at the end of 18 months when I plan to refinance, and use a hard money lender for the other 70%. Hard money lender wants 12% plus 2 points, from what I have read on their website, which is fine as this is my first deal and establishing a business relationship. I have an S-Corp. set up for over a year now. I plan on using the corp to buy the property. I know that I will suffer a bit in taxes for it not being an LLC.

My question is how do I structure this on paper with my friend's 30% down and 12% interest? The hard money lender works with a title co. so I will be checking for liens, clear title etc., but is this something that I can share with the hard money lender and they will put it together with their closing team? And will the hard money lender allow me to live in the property for a year?

To most of the seasoned investors, this may sound like a real novice question, but I appreciate your feed back. Thank you for your attention in this matter.