All Forum Posts by: Account Closed

Just a follow up on this post. I wound up purchasing this property with the 25k, and the seller took a promissory note, which after some more negotiating, was 15k. I gave him 3 payments of 5k. I rehabbed the property, put in a rent-to-own tenant, then obtained a 60k first from a credit union. The appraisal came in at 82k. Also, the tenant put down a 3k non-refundable deposit. 

Hi Kevin,

Thanks for the quick reply. For one thing I will not qualify for a conventional mortgage, so more than likely I will have to go with a hard money lender. I don't want the repair money to come out of my own pocket and I want to keep or get back the 25k I pay out at closing for the next deal. I am concerned that if I show I still owe another 30k on the property it will be more difficult to cash out. I have a lender who HM lender who is trying to get the loan through before close, that way all I have to worry about is structuring the note properly with the seller.

Hello all,

I recently closed my first wholesale deal and have a few other deals in the works.

I will be closing on a deal next week on a property for 55k. It needs about 15k in work and has an ARV of 110k. I am paying 25k cash for the property at closing and the owner is holding a note for 30k. This amount will be a note between the seller and I, and I will want to refinance right away but I do not want our note to show as a first lien. I plan on having an attorney draft the note. Can I have a note drawn up with the property as collateral without it showing as a first lien? Also, if the owner trust me, and he does, would I be better off just doing an unsecured notarized promissory note?

Thanks guys, I think I got a little confused because I made my deposit out to seller- who cashed the check- so I started contemplating on how/when to get my deposit back and how it would wash out in closing.

Ok, I guess I answered my own question. Assignment contract must be enough.

I plan on meeting a few people at a property I am wholesaling. What do I give to the assignee (retail buyer), in exchange for their deposit? I plan on giving them a copy of the assignment contract. Does anyone ever get resistance when doing this? I would be reluctant to hand over a deposit to someone I just met at a property.