Potential partner preferred to be a private lender.

[Justin Owens]

My wife and I had our 4th purchase of the year in escrow then we found a deal we could pass up. We have been doing 1 deal at a time using our HELOC to fund then selling or refinancing the properties. Since we needing funding for this 5th deal in Mesa, AZ she took a potential partner by for a look. I was in Tucson at the time trying to communicate with the seller while she was trying to line up thebo partner. However, the potential partner seemed overwhelmed with the whole thing and offered to just loan us the money at 10% apr interest only payments with no points. She funded 100% of the purchase price and we even got our earnest deposit back! This all went down Wednesday and we closed on Friday. We still have the other property also, in Mesa, closing this Friday. Now we are scrambling to manage two rehabs at once. We are planning on flipping both at this point because our all in price will be higher than 1% rule on market rents and we won't have 25% equity to do a true BRRRR. We will see how this turns out but we are super thrilled to find a private lender who is super easy to work with.