All Forum Posts by: Bon Donaldson

Thanks Pari.  The Dodd Frank compliance is heavy on my mind.  I think I may just treat this situation as a secured promissory note as the money wont be used to pay off an actual mortgage but instead a personal loan.  Treating this like a business is a heavy aspect of this and as such I'm trying to establish payment schedules and the works so that it's all up front and as official as possible.  Just as I do with my buy and holds/flips.  Anything thoughts of issues in doing it this way?

I listened to that one. Wasn't exactly sure on the best route to make this work. My 401k isn't on the table. I have the cash. Just looking for a way to make this work together. The HELOC option may work. I'll make the suggestion. In the meantime, the creation of a situation that that is mutually beneficial instead of paying a bank is preferred with both parties. Also, there are a variety of issues that may preclude the ability to get a HELOC. So with that said, is a note creation the best way to do this?

I have been doing some digging and feel that I haven't found what I am looking for.  So for my first post after years of lurking I am looking for creative ways to make this work.  

Situation:  I have a friend who owns his home on paper.  He owes 35k of a personal loan that he used to purchase the property at 10% interest.  He is trying to get on track with his bills and what not but needs some support.  I am thinking about offering financial aid in a way that would benefit both parties by paying his 35k personal loan off and essentially offering a "re-fi" situation.  

Being that I have some knowledge in real estate (buy and hold/ flips) I understand there is a way to do some sort of financing on my end to help out.  I was thinking something like private/hard money long term?  3 year interest only@9% then transitioning to a 7 year amortized.  

I'm trying to get a gauge on what I should do to make this work.  Have a note created?  What legal issues are biggies with this? Is there a better way to handle this situation?  

Thanks to all ahead of time.