I'm finally making a move and I'm currently in contract on an investment property. I will be using an out of state private investor and they will be purchasing the property with cash and we'll be looking to flip and sell in a few months. It's my first investment house beside my primary and the investors first time purchasing an investment too. The purchase is rather small at 20k but had some questions about the actual transaction.
The investor offered to send a check directly to me to then pay for the property and then requested to be paid after the house was sold. Is that the best way to go about using investor cash for purchase?
If the cash is sent to me wouldn't I have to pay taxes on it? Also I've heard you could make the payment as a personal loan to me if so how would I go about this?
From what I've tried to research is the best option to have the investor send a check or money directly to the Title company? If this is the case does the investor need to be on the contract and paperwork?
Looking for feedback on the best way to go about this transaction.
Thanks!
