All Forum Posts by: Matt Burgess

Hi everyone,

My partner and I are looking to purchase property and potentially bring on a third money partner. To be more clear, this third partner would provide the down payment and get the loan in their name.

From what I have read, my partner and I can be on the deed even if we are not on the mortgage. So, my first question is, is that correct? Has anyone ever had issues with a similar situation?

My second question is, can our LLC be on the deed, but not the mortgage? Or does it have to be our personal names on the deed?

Any and all advice is much appreciated. Thank you in advance. 

Hi everyone,

I am looking to purchase property using a money partner. I read in Brandon Turner's book, "The Book on Investing with No and Low Money Down" that you can have a partner take the mortgage out entirely in their name, and you can still be on the title. My question is, is there anything I can do to make the partner feel more secure with the debt being entirely in their name?

For example, if I just decided to stop managing the property, would they just be stuck with the debt payments?

Obviously, that is not my plan and I can make it clear to them that I would never leave them hanging, but it would be nice to have something on paper. Just trying to put myself in their shoes and make them feel as secure as possible.

Thank you

Thanks @Rick Pozos! This is exactly what I was looking for. 

Hi @Andrew Postell,

Thanks for the feedback!

Yes, we need private money because we don't have the cash ourselves. 

It sounds like we are on the same page about private money. As in, someone who we already have a personal relationship with (most likely). And yes, I agree that they won't be versed enough to understand title, etc. which is why we are trying to get as thorough an understanding as we can before asking anyone to invest with us. 

It sounds to me, like we need to research how to draft a note, and contact the title company to ask how they typically handle the transaction. 

And that is good to know that you don't always need to show proof of funds. 

Hi @Greg Scott,

Really appreciate the feedback!

I understand what you are saying about getting prequalified. We will be sure to do that to ensure we can pay off our short term financing when its time to refinance. 

On this note, "Professional lenders are not foolish enough to give people the cash. They would quickly go out of business. Funds will go to the title company." That makes sense, however, we are not planning to use "professional lenders", but private lenders rather. People with extra money looking to diversify. However, I'm assuming the process should remain the same? As in, they would write the check to the title company?

Hi everyone,

My partner and I are looking to start using private money as a financing option for the BRRRR strategy.

We understand the high level concept (how we pay them back, benefits to them, benefits to us, etc), but there are some minor details that we would like to understand better before asking someone to invest with us. 

1. Should we get a proof of funds that we can use when submitting offers? I believe it is common practice to submit a proof of funds when submitting a cash offer. How do we get that from a private money lender?

2. How does the money actually change hands? For example, do they write us a check when its time to close? Do we need to have the money in our account prior to closing? Do we write them a check after the refinance or are they paid by the title company?

I would love to hear how you all are currently using private money, specifically around the questions above. Thanks in advance!

I am a newer investor looking to purchase properties using creative finance and I am looking for more ways to increase deal flow. 

Has anyone found deals by calling rental listings?

My thinking is that investors may be more open to having a conversation about selling on terms. 

These deals would also be "off market", so we would not have to pay any agent commissions. 

If I can structure the deal so that they get some immediate cash in their pocket, cash flow consistently, and no longer have to manage the property, that seems like it would be an appealing offer for many people. 

I'd love to hear about any experiences anyone has had or recommendations for this strategy. 

@Dmitriy Fomichenko thank you!

@Jim Stout thank you!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in St. Charles.

Purchase price: $230,000
Cash invested: $9,997

Duplex house hack

How did you find this deal and how did you negotiate it?

I found this deal on craigslist. It was listed for $245,000 and I offered $235,000. We met in the middle at $240,000. Then the appraisal came in at $230,000 so the sellers came down as they did not want to restart the process.

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

Gradually improving the property by raising rents, improving curb appeal (trimming overgrown trees/ bushes, new landscaping, power washing). Also plan to remodel kitchen and bathroom for the unit we live in.

What was the outcome?

*Desired outcome: Refinance into a conventional loan as soon as we can and begin looking for another house hack that we can purchase with an FHA loan.

Lessons learned? Challenges?

FHA loans are expensive, but also a great way to get into a home with not a lot of money down.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We were lucky to have a great team of professionals throughout the process. Our lender was Carrollton Bank (St. Charles) and they were very responsive and helpful throughout the whole process. We moved closing up a week early and Carrollton handled that with no problem. Our agent was Tina Knox. We couldn't have asked for a better agent to help us with our first purchase. She went above and beyond in every way possible. We would highly recommend Carrollton and Tina to anyone looking to buy in STC