All Forum Posts by: Paul Gilo

@James Masotti I respect that.

have not seen much interesting on mls, last couple years. maybe off market you can find something that can do a 1% rule.

@ David C. The borrower would be getting a title search and title insurance, as well as the general insurance on the property. Should I be talking to the same title company he will be using to get a lenders title insurance? Or is the title insurance borrower will get be sufficient?  

Regarding "RESPA, TILA, DF, SAFE, Usury and whatever" I am assuming these are regulations that make it a problem for me to loan on an "owner occupied property"?

Sorry if I sound a bit thick on this, I probably am. It certainly is an education. :)

Thank you!

@Kathie Riedel the other property is a duplex he got for cheap, gutted the full ting and is working through putting back together. He was originally planning to live on one side and rent the other, but then found this SFH that he could get and pay off in a few years, instead of paying rent where he lives right now. The plan was for him to live there until loan is paid off and then turn it into a rental. But that seems backwards based on what I'm reading. lol... sigh...

@Account Closed saw this post on another thread... is that something a title company typically does? handle the recording of leans against property? But I guess since this is the primary residence its a bit different. 

"1. Funds are distributed by title after mortgage is recorded, usually the same day. I would wire money, not cashier's check, cashier's check will delay closing by a few days to clear. You can send your money to title in one of two ways, (1) wire $25k and title will send you a check (or wire) after closing for your points/fees, (2) net funding: wire $24k ($25k-$1k) and you don't have to wait for your $1k check.

2. I get a ALTA Lenders Policy with whatever endorsements come standard.

3. Attorney once, template forever more. You fill in the blanks, email to borrower, borrowers signs, in front of notary for mortgage, notary not necessary for note, borrower overnight mails originals to title, title records mortgage after your funds arrive at title, title distributes net proceeds to borrower and whatever if any proceeds to lender. Borrower will usually have to bring money to closing to pay down payment, fees, liens, taxes, etc above and beyond what lender funds don't cover. If borrower doesn't bring money to closing you as lender lent too much ... borrower doesn't have skin in the game."

@James Masotti noble desires. typically ppl only care about protecting them selves. not the other party. 

Sounds  a bit more involved then I thought it would be. 

Seems like the best and most straight forward bet is to go through a broker, I assume that is a mortgage broker, and have them handle the legal stuff for you. 

Appreciate the info. 

Thanks David! What kind of fees can I anticipate by going through a broker?

Alternatively he does have another investment property that he owns and is working on fixing up. I could use that as collateral. How does that change my scenario?

So it sounds like I would be doing a personal loan with no recourse?

I am a small fish in a big pond and any gains I get out of this are minimal. Trying to help the guy out more than anything. But at the same time want to know if there is any hope for protecting my "investment". 

Thanks!

Good thread. Interested in learning more about hard money lending. I got a guy that wants to borrow money towards a property purchase. Trying to figure out how to go about it from a legal perspective. Looking for guidance. I think OP would benefit from the info as well, to gauge the headache involved with PML. TIA!

Hi, 

So, I'm trying to make it simple... 

I got money I am lending to a brother in-law to purchase a property. Property needs cosmetic work. He will do the work him self and pay for repairs him-self and then occupy the property. 

I am putting up 75% of purchase price. 

This will be a cash purchase. He will get title search/insurance and insurance on the property after taking ownership. 

The question is how do I cover my self in case of unforeseen situations? Lets say he gets hit by a bus or something or looses his mind and refuses to pay back the loan.  How do I get the lean on the property or set it up as collateral on the loan? How do I make sure I have recourse. 

I want put together a doc and put all the terms on paper. Have him sign. Is that even legally binding?  Is there a doc online that already covers this? Do I need to get a lawyer involved?

FWIW... I am in Florida, he is in Ohio. 

Please advice on how to best handle it. Thank you all in advance!

This may have been already covered and if some one can me to where I can read up on it. I would appreciate it.