2nd mortgage

[Joshua Hawkins]

I'm new to this. Before I go out and start I've been getting everything all set up. I've got my investors, I've got my title company, I just have to find a realtor, and lastly I have to find a house. My question is though, when I was talking to the hard money lender I'll be going through, She said I would need to get a second mortgage to pay the title company. I need some advice on how to pay the title company with a second mortgage or if there is another way.?

[Rob Green]

Originally posted by @Joshua Hawkins:

Originally posted by @Rob Green:

Joshua,

I'm not sure I understand the situation. Is the hard lender suggesting that you borrow money to pay the title company fees? 

 I believe that was what she was saying. I when I was talking to her, she was saying that I would have to pay the title company for putting the deed in my name and closing the deal. Well I explained to her that I had no money. She said I should go to a bank or friend, and if I went to the bank I would have to get a second mortgage on the house. Well My credit is terrible, and there's no way I can get a mortgage through through the bank to pay the title company.

 Ok. That makes more sense. But, regardless of your credit, a bank is not likely to lend you enough money to pay for the title fees anyway.

I'd suggest that you connect with a fellow investor and have them pay for the title policy in exchange for a split of the profits. They can also screen the deal with you and give you a second opinion on the terms of the deal itself and the terms that the hard-money lender is requiring. 

You may also find that the investor has access to cheaper money.

Good luck!