How to handle investor funds

[Justin Griest]

Hi, I’ve got a deal lined up but am confused about the final funding. I have a private money lender(family member) that is going to fund the deal. The problem I’m running into is how to have the funds applied and still have the property in my name? If they wire me the money aren’t there tax implications? I’m getting conflicting advice and was having trouble finding an exact answer in the forums.

[Account Closed]

@Justin Griest

Is this lender financing the entire purchase? If so and they are taking the property as collateral this sounds like a standard mortgage situation. 

If that is the case the lender will work with the title company to ensure all documentation is complete and wire funds to their escrow account to close the transaction. 

The property will be in your name as the owner, the lender will then have a first lien position on it. 

Disclosure: I am not an attorney and recommend you speak to one. I am a private/hard money lender.