All Forum Posts by: Ankur Patel

Thank you all for the responses.

The loan is not secured by the property so I will only send the private investor a 1099-INT form as well as consult a tax professional. 

Hello,

I have a home that I am flipping under my own name but received private money from a family member. I am going to pay that family member their principal plus interest. Is the only form which needs to be sent to them the 1099-INT by me to them or are they also required to send a 1098 to me as well? Any help is appreciated.

Thanks,

Ankur

I would start looking for family and close friends as they would be the ones most likely to provide you with the private money you're seeking. I would give them all the details of the property regarding purchase price, rehab costs, ARV, etc. and be clear on what all risks/awards are so they can make an informed decision.

Hope this helps. 

That's what I figured, that they wouldn't care about the source of where the money came from.

Thank you all for reconfirming my suspicion.  

That's exactly what I was thinking, why the heck would it matter where the cash came from.  This mortgage guy seemed very confident in this though but I wanted to double check on this, however I cannot find this information on the HomePath website so was hoping fellow BP members have some experience with this. 

Hopefully their policy on cash offers hasn't changed from 4 years ago..

Hello,

I am looking into a HomePath property where I would like to purchase it in cash using privately raised money.  However in a conversation with a mortgage lender who claims they know the process, they mentioned that Fannie Mae will still look to at my bank statement to see where the monies came from; if it comes as a gift (as it will look like in my bank statements) then I would first have to pay income taxes on that amount and then look to purchase the home.

Does anybody have any experience purchasing a property through HomePath using private money that was raised? I wanted to give ~10% return to my investors once I flip the home as I will be getting the home at 70% ARV.

Any help would be appreciated, thank you! 

Thank you all for your input.  It sounds like what I should do is be co-borrower/buyer with the investor I'm partnering with and have both of us on title as well. If that is done then it seems as if what @RajGandhi stated could be the way to go. 

Hello All, 

I am relatively new to real estate and had a question related to Credit Partnering. I have been approached by a real estate investor (A friend whom I trust) who would like to structure a setup where he finds the property and I come in with the credit to secure a conventional loan and ability to refinance at a later point and have a buy and hold property in both our names. Is this something that is possible and if so what steps what need to be done to accomplish this? With this scenario what would be a fair split in terms of profit or percentage of money I would put down vs the investor?  What would be the risks?  Any input would be greatly appreciated. 

Thank You