Need help with structuring private money loan

[Ronnie Sparrow]

Both my Private Lender and I need help with how to structure the repair costs at closing. I have used this Private Lender before but the loan did not cover the rehab costs for the previous deals, those costs were paid by me out of pocket. On this deal he is willing to include the rehab costs in the loan but we are not sure how to explain that to the title company. They are wanting me to do an amendment to the purchase contract that states the costs of the rehab. I have used hard money loans before and they have their act together with all the proper wording and such. But for me and me Private guy we are not sure how to proceed with the title company. I am thinking that I would want a separate check for the rehab costs given to me at closing. Another concern my lender has is how it is going to affect his taxes? Any explanation will help.

[Dell Schlabach]

Keep it simple, the title company doesn't care where your money comes from or how you got it. They are only concerned that you have it available to close.

If this is an REO, the bank will likely choose the title company to close, and any information to them about where you go your money will only confuse them.

This is assuming the lender did not ask for funds to be escrowed.