Every tells you their thoughts, here I’ll tell you what I do personally no BS:) I have the PL go in 100% of purchase price and any closing costs, I sign title get the keys and not put a dollar down. I pay my PL anywhere between 8% to 10% depending on the size of the loan, I have them hold for 12 months max 18 months. After that I pay for everything else to get that house ready for rent but in your case to flip. For me I pay all contractors , materials, inspections, I do the showings and placement of tenants once rented I then go and refi out and that depends reg 30 year fix is my preferred method of refinancing out.
Hope this works for you. I’m looking for PLs for projects that I need little to no work now and need the funds to be held for 12/18 months, thing is now I need $600k to $700k to complete my scale plan for 2023.
As for the lender I sign a promissory note and have their contract noted, and documented with title, that so and so gave X amount of money and I will be paying X amount of interest in X amount of time. Then when you refinance you’ll have a satisfaction of payment statement at closing that you and the PL signs, this is basically what I do with my deals, maybe different methods with others or in different states. But should be the same or similar song and dance.
