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Updated about 7 years ago,
Financing our own BRRRR deal to partnership
Happy Winter to all of you!!
Me and my partners currently follow BRRRR strategy where we buy the property with HML and as soon as rehab is done, refinance it within less than six months. Now, for our next property together, I want to explore an option to fund the deal with my own cash where I can charge some interest and points (to our partnership) and refinance it as soon as rehab is complete (in 2-3 months). So, I wanted to know -
1) What is the high level process for the same?
2) Do I need to register as a lender or just LLC is good enough?
3) How do I document the points and interest rate and put the property as collateral?
4) How does the interest/profit considered from tax perspective since I will be lending the money to our own partnership?