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Updated about 5 years ago on . Most recent reply

User Stats

284
Posts
137
Votes
Pat Jackson
  • Rental Property Investor
  • Reno, NV
137
Votes |
284
Posts

Ensuring hard money is a win-win for all involved

Pat Jackson
  • Rental Property Investor
  • Reno, NV
Posted

I have a single family under contract that I want to flip.  Quick numbers:

Purchase Price: 59k

ARV: 120

Rehab: 23-25k

Holding costs, commissions, closing etc (includes hard money payoff): 13k

My hard money lender will do 10%, no points, pay off due at closing (and loan 80% of purchase price).  The kicker is the funds have to be out 6 months or more to make it worth his time.   I asked if I could sell the house in less time, could I reuse the money.  He wants to be involved in the deal, which involves notarized signatures, overnighting documents, etc.  It makes sense he's in front of me, if I get hit by the beer truck he gets the house.

My question is this.  What can I do, create, or otherwise oversee where he's "protected" but not having to run around doing errands.  He values his time, and I want to keep using his funds while they're out but offer him protection.  Thoughts?

  • Pat Jackson
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