Hard money loans are out since they want 60% LTV.I'm looking for an investor who can buy the house, lease it back to me on a short-term basis (around 2-3 years) and then have it transfered to me.

I think you are saying that you have a loan on the property at 7% and you want to find a buyer and finance their purchase at 9%, therefore making a spread.You will not be able to transfer title fully to the new buyer if you do not first payoff your loan.

By this I mean I hope you are truly helping your Grandparents and not taking advantage of them and trying to transfer their equity into your name.

Originally posted by "swgprop":… your lender has to be willing to accept a deed in lieu of foreclosure… … you can't simply mail it to them or record it…Yes, they do need to be willing to accept it… The reason they would not accept it is if they felt they could get money out of you… Or, if there were other liens they would need to foreclosure off to clear up the title… And technically, you could just prepare a deed, record it, and mail it to them… It does not take the person that is receiving the deed to sign anything in order for title to be transferred… Hummm… Interesting, wonder how many times this has been done?

You will get a deed (trustee's deed in CA) that you will record yourself to perfect the transfer.

Lenders want as many people and assets to after as possible.You can always take out the loan in your name and then transfer the property into an LLC for protection…

As for how confident I am in my costs... pretty confident.

That would leave me with a $20k profit, not counting closing costs, transfer tax, holding costs, etc.

On the next deal we do, I’ll finance the property but the LLC will go on the deed, thus bringing things equal.On a side note for anyone reading this: The settlement company told us today that to move the rental property into the LLC would require a 2% transfer tax and the LLC needs to be two years old.

This may work but I'm not too sure since you would be pulling your money out of an IRA and you will usually always be taxed regardless when transferring money from an IRA account.