What type of mortgage?

[Cathy Malmrose]

What kind of solution would you use for this scenario? I think I need a mortgage that allows for 2 separate borrowers? 

Buyer 1 is ready to buy his first home. Salary allows him to get a $340k conventional. No downpayment yet. 

Buyer 2 is ready to sell his $220k home, currently owns it outright but is self-employed, small but sustainable income from investments. $220 will be his cash contribution to the home. No mortgage. 

Buyer 3 (me) has $1.5m in real estate holdings, mostly land contracts, that Net $7k/mo. I have $250k liquid. I don't want to get a mortgage but I can probably get another $250k in mortgage. 

House will be approx $650-750k  in South Jordan, UT. Buyer 1 & 2 are brothers with a long track record of working together well. Buyer 3 is me and while I wouldn't live in the house, I need a place for my 2 youngest to live while in college. A mortgage would be $2k/mo. Dorm rent is $2k/mo. I would rather invest in a home than toss money on rent. The area where the house is located is well-built out and about as stable as a RE market can be. 

Most of my question is in the timing -- The $340 from Buyer 1 can be available in a few weeks, depending on how long the mortgage process takes since it will be his first house. The $250 from Buyer 3 (me) is already liquid, just need to transfer to a single acct ready to go. The $220 from Buyer 2 won't be liquid until his house sells, probably fast but I never like counting on it, so, I am considering a mortgage to cover the gap while Buyer 2's house sells. What kind of mortgage should I get? A 5 yr balloon? Are there any other options for investors like me who have a portfolio but no W2? I am a sole-member LLC.

[Matthew Crivelli]

@Cathy Malmrose

Does this house need work done to it? Why not use a rehab loan for the initial purchase. Buy it through an LLC with all the siblings attached. This will get you in the door and you would have the money to fix the place up sitting in an escrow account. Typically there is no pre-payment penalty on these loans so once the house is up to snuff you can refinance out and possibly pull equity out too.

Great option for buying a fixer upper.