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Updated about 5 years ago on . Most recent reply presented by

User Stats

66
Posts
23
Votes
Jordan Northrup
  • Rental Property Investor
  • Stafford, VA
23
Votes |
66
Posts

Private money contracts for BRRRR investor

Jordan Northrup
  • Rental Property Investor
  • Stafford, VA
Posted

Hey all, so I know someone with significant cash resources they'd like to put to work. I'd like to find a sample contract that I could create so that the lender is protected and I have a promissory note that holds me accountable and that proves where the money came from when it comes time for refinance (and taxes). 

Am I thinking on the right track here? Does anyone have a contract I use?

  • Jordan Northrup
  • Most Popular Reply

    User Stats

    66
    Posts
    23
    Votes
    Jordan Northrup
    • Rental Property Investor
    • Stafford, VA
    23
    Votes |
    66
    Posts
    Jordan Northrup
    • Rental Property Investor
    • Stafford, VA
    Replied

    Thanks Kenneth, So here's a little more information. The lender is an extended family member who's got about $300,000 from the sale of an extra house. SHe's very risk adverse and doesn't want to do the stock market. She's going to loan to me at 5% with a balloon payment after 365 days. I'm going to be investing out of state because the prices in Northern Virginia are more than she can afford.  So I'll go back to my hometown in the midwest and invest. Between the purchase and rehab, I can be all in for less than $50,000. 

    So you're suggesting that once I have a property I want, get a lawyer involved and have them draw up the paperwork for the particular deal so I can get the money from her and send it to a title company?

  • Jordan Northrup
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