Private Lending on an Owner Finance

[Mark Wilton]

Hi guys,

So I'm incredibly close to locking up my first Owner Finance deal but have questions about approaching my Private Investor for the Rehab costs.

Typically I'd say to my investor that they'd be secure by the note on the property but considering the Owner still holds Title in this case, how can I reassure my Investor he can be secured to a point and not in a second lien position.

[Bill Gulley]

You said the owner has title, so that isn't seller financing with a note and deed of trust, sounds like a land contract and that is not what you want if you are rehabbing the place!

Search "Contract For Deed" and "Land Contract" here on BP, especially my posts on the topic. Get a note and deed of trust, take title, your private money can take a second mortgage. Good luck :)