All Forum Posts by: Doug W.

You are looking for a private money lender to give you a loan for a fixed interest rate. You will probably need to sign a Promissory Note and give him a Deed of Trust on the property. 

Also, you will likely need to come up with between 25%-35% of the total cash needed. 

I will echo what Will stated. What additional value do your boyfriend and you bring to the table? Don't take this personally as I am sure that your boyfriend is great at what he does... if I was the rehabber in this scenario and your boyfriend suggested that he gets X% of my profit I would likely just find a replacement handyman/remodeler who will work for an agreed upon price. 

Keep in mind that no contractor is going to give you a price without you telling him/her very specifically what you want. Simply saying "to see what needs to be fixed on the inside" can me 50 different things to 50 different people. Without you providing a detailed scope of work you are wasting your time and the contractor's (and Realtor's). 

Thanks for clarifying @Mark Allen

I see where you are coming from. It would be interesting if you calculated both scenarios to see what the per annum interest rate is. 

I see the major positive for the other guy is that his project is getting 100% funded without any (at least not major) money out of pocket. Where as in your case you are needing to come up with something. 

I have spent my recent downtime raising money. My only regret is that I didn't raise more money sooner. 

It looks like you double counted (double subtracted) your return of principal. You already removed that number when you backed out "Less Acquistion and Rehab Loan" in Cell C22. 

Simplified:

$620,000 ARV
-$370,000 purchase
-$TBD closing costs
-$52,700 Selling Expenses
-$89,000 rehab costs
-$24,660 loan cost
- $TBD holding costs (insurance, utilities)
- $5,000 misc

= $78,640 minus whatever those TBD costs are

Your profit will be taxed as ordinary income.

How much of the purchase and rehab costs is the PML putting in? I can't tell if your comment "using 100% private money" means that all of his borrowing comes from a PML or that the PML is funding 100% of the costs (or maybe both)? 

Were you planning on just wiring her the money directly and filing the deed with the courts yourself? I'm being facetious. Open escrow with a (legitimate) settlement company of your choosing and allow them to handle the title search AND issue title insurance. 

I very much am a proponent of the "date. Don't get married" perspective when it comes to these things. Make it easy to work together while making it easy to go separate ways if needed. 

Why will it take 2-3 months to complete $15k of work?