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Updated about 1 year ago on . Most recent reply

User Stats

231
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140
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Bob Willis
  • Investor
  • Curtis, NE
140
Votes |
231
Posts

Using HML in a subject-to transaction

Bob Willis
  • Investor
  • Curtis, NE
Posted

Will Hard Money Lenders work with buyers on subject-to deals? I ask because I have two subject-to deals on the vine, one I'm closing next week and the other shortly after. I don't have enough cash to do both. I was wondering if bringing in a HML would keep me from using all of my cash.

  • Bob Willis
  • Most Popular Reply

    User Stats

    572
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    572
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    Derek Dombeck
    • Real Estate Consultant
    • Wittenberg, WI
    572
    Votes |
    572
    Posts
    Derek Dombeck
    • Real Estate Consultant
    • Wittenberg, WI
    Replied

    I co owned a hard money lending company for 10 years and we would not be willing to be in 2nd position behind an institutional lender. 

    That said, I buy sub to property myself and when I need cash to rehab or catch up defaulted loans, I like to bring in private money and make it appealing to that person. Often I will structure a participation note/mortgage.  I will pay the private lender a percentage rate as well as part of the equity in the deal. My investors really like this structure. 

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