Updated over 2 years ago on . Most recent reply
Private Money, Promissory Note and Wholesale Deal Questions - Out of State BRRRR
Hello everyone,
I have a couple questions involving a deal I have under contract I was hoping someone can shed some light on....
1. I have a wholesale deal under contract that closes on the 15th of June. This is a cash offer, which I have cash for, but as it puts my money in limbo for over a month, I reached out to a family member who is going to give me a private loan. The private loan would cover the purchase price of wholesale deal and I would keep enough cash on hand for the rehab needed. This works great so I can use my cash now for another deal. My question is: This won't be a problem when it comes time to close, that I would wire the money from my family members bank account to title to close the deal right (I'm wondering if that is still a "cash" deal as I offered/contracted)? I would also need to put my family member down as first lean on the title. I don't see any issue with this, but wanted to check here with you all prior to letting the wholesaler know as I have just never done this before.
2. I also need a promissory note/contract for my family member and the private money loan. Does anyone have a copy of one they would be willing to share? :)
3. Anything to do with this deal/structure I'm not thinking of or that I should be considering? I want this to go smooth for all parties as to have a great relationship and experience with my private money lender and new wholesaler.
The first lean and promissory note were my idea to make sure my family member is covered and feels comfortable (which they did anyway).
Thanks!