securing private money along with hard money on the same house

[Darrin Smith]

Hello all,

I have rehabbed a good amount of properties using Hard Money and always have to come out of pocket for points, closing cost, etc. As far as Private Money I have not found that one lender who has more than 30k to lend at once. However I have several private money people who are willing to lender 10k, 20k, 30k and I feel like I am able to put that to use somehow.

I have never truly done a "no money down" deal as far as rehabbing goes. I am thinking that I can use these small amounts that the private money people have to cover all points, closing cost, and any down payment required.

Does anyone have experience at doing both PM and HM on the same deal? I am assuming HM will be in 1st position and PM in 2nd. If not, how is this structured? Can someone please explain. Will the Hard Money Lender allow a private lender cover all closing cost? Will title company have a issue with this? The money with the private lender is documented on a promissory note and handled by title company?

Thanks for any help anyone can provide

[Rick Pozos]

I dont know how 2nds get recorded in MD, but if I am going to do a 2nd on a property in Texas I would have all the money go to the title co so that they can record ALL liens at closing. That protects my lenders.