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Updated over 6 years ago,
Need advice on cash deal- my first property. Help!
Found a badass property that has a lot of potential. It needs about 30k of work, can probably make at least 50k on the back end (not including interest from loan) so lets say 25-35k with minimal work. Has to be cash due to repair work. Already tried 40k down and owner financing, they didnt go for it. My options are
- Make offer stipulation I can get financing
- Wait and hope it doesn't sell and remake 40k offer with owner financing
- Obtain private loan (already tried family and friends, all too risk averse and uneducated) make low cash offer
Friend of a friend put me in touch with some bigwig hard money lender with a legit company. He was explaining to me that he can't loan money to me personally, but since I am a business owner, he can loan it to my company, or i can create company for this purpose. However, the fed regulations say something like the loan can only be for a flip, not an owner-occupied. We want to live in this home for some amount of time. He said the company can lease the home to someone (me) legally.
I was thinking maybe we can use the hard money lender, fix it before we move in, then sell it to ourselves somehow? We are not married... is there any way to do this legally?
This has all happened really fast, and I am trying to make this deal work because its a good one. It is also my first deal, so I am learning a lot, but my realtor is also a BP member as is helping a lot. IF nothing else, I am getting a ton of experience.
Please give me some advice on how to make this work, legally, or other option I may have. And correct any points that I made that are inaccurate. Thanks!
Location- Florida