All Forum Posts by: Drew McKinney

Hello all,

I have an owner with a decent amount of properties willing to sell and finance them to me.

I have several logs in the fire currently and don't have all of would be the down payment for these properties.

I've used private money in the past from friends and family and just cashed them out in a year or two. My main question is how/what do I provide them with in terms of security when the owner is financing the deal/s?

Thanks in advance

Drew

Form a LLC partnership?

Wow, thank you all for the excellent replies!  I have done this in the past where they loan me the money with a promissory note and I pay them a certain percentage for a year, refinance and pay them off.  However Ive never used two investors for the same property.  I'm guessing they would take a first and second position?

I do also put some of my own money into each deal but I want to make sure this is the done the right way because you're absolutely right Jon Holdman. Everything has been fine in the past with their monies but things can and will go wrong and I would never want these people to lose anything they have invested.

Hello all,

When one receives private funds from say two different parties 50k each to buy a 100k property for example.  Friends and family will say are the investors.  Does this need reported or claimed anywhere for the irs? I guess my question is does the irs or sec care that you're depositing large amounts of other people's cash into your bank account before close or is that what the escrow and closing officer is used for so that you don't have to put those funds into your account and draw attention per say?

Thanks!

Drew

We always put the plastic ones up. If we dont they end up hanging tiger skin blankets and all the other really nice bed spread, sheets etc.