All Forum Posts by: John Korinke

@Tara Daniels Thank you, I am not well versed in HML, won't the interest rates be quite a bit higher? I have very good credit so I don't think a conventional loan would be a problem.

@Alexander Wardell This is very helpful and gives me a couple other options to think about. 12% was not negotiated yet but that is about her average return her money is making her in the market, so I wanted to be competitive. 

@Frankie Woods Thanks a lot! Didn't know abot seasoning funds.

Hello everyone, I'm looking to get my first single family rental property soon and was hoping to get some advice. I was planning on borrowing a 20% down payment along with rehab costs from my mom and giving her a 12% return on whatever she lends me. And getting a conventional loan. I'm hoping to be able to pay her back in full after a cash out refinance. If I can't pay her back in full then she would get the cash flow until it's all paid back plus 12%. Does this sound like a good deal for both of us or am I overlooking something? Is she allowed to give me that much money or do we need to be in a formal partnership? I believe you can only gift someone in the range of $14k? Thank you for your help in advance!