Credit Partner insights.
Just got offered an interesting opportunity and need some insight.
said person is currently wrapped up in what was supposed to be a fix and flip but it was taking longer than expected and over budget so it is now getting turned into a long-term rental they are unable to refinance out of the hard money loan due to credit issues using lines of credit to fund the rehab. I have good credit and they want me to refinance and hold the loan and asked what I would want to be compensated for doing that. Preliminary numbers show the house would cash flow $600 they asked how much of that I would need to make for it to be worth my while and I told them I would get back to them in the morning. I'm not sure what is fair for being solely a credit partner and not having any money in the game but still having the risk of holding the loan.
as a side note they offered short-term or long-term partnership depending on how long I wanted to be involved.
Please let me know pros, cons, why you would do it, why you wouldn't do it etc.