My pickle/real estate woes, help/suggestions

[Eryn Garcia]

Hi friends!

Looking for help and suggestions- I want to say I have learned my lesson and now know to use a third party to hold funds.

This is my first time working with a private lender/family member. This is my third year investing with my mini me 12 year old and this is our 5th deal.

My 12 year old found us a great deal- I teamed up with my friend and family member agreed to pay purchase and renovations. House was purchased August 2024 6k sq ft 9 bedroom distressed home for 66k ARV around 330k in the middle of renovations all of the sudden the bank accounts are frozen and we now have no funds to finish renovation. His bank account and our bank account is frozen and they just give us a scripted message saying funds will be released once investigation is over. This was months ago and family member has lawyered up to see what's going on we did continue working until we ran out of credit card figuring once the money is released we could just pay off the cards but the money is still on hold

Back in October we decided that money does not exist and started applying for hard money loan/speaking to lenders and have gotten nowhere. Some say we have to buy the house with them or we paid too little for the property and finally after going back and forth and submitting all our paper work and paying for appraisal they now tell us they didn’t realize that the property had so many bedrooms and they said they do not loan to properties with so many bedrooms. So back to square one

Property is in her name free and clear. She has a charge off that expirian will not delete everywhere else deleted it so that blocked her from getting a heloc no 401k my dti is high because we used my cards

What would u do in this situation? This is a buy and hold in a great location in a great market

Does anyone know of a group i can post this deal

And last option we were considering was to use her cards to pay off my debt so then I can buy the house from her and get a loan on it

If u made it this far thanks 🙂