I take care of rehab, but...big BUT...what is a way to protect my interest in the property while I rehab, allow him to secure his interest while I rehab and resell, all until the property is sold and we all cash out?

my sweet innocent tenent never cleaned a thing in 9 months , she stained the carpet , it took 26 passes with a steam cleaner to get the carpet looking like new , she kicked a hole in the wall , these are just a few things , total 1,500 dollars worth of clean up and damages, she paid 400 for security deposit , do i send her a bill for the difference or do i have to eat the diff, i took pictures before she moved in and of all the damages after she moved out , :shock:

Would you do a JV, or just secure the note to the property and have your LLC as the soul owner?

Both parties are running the risk of losing the property or being forced to pay the loan off in full if and when the bank enforces the due on sale clause which is present in almost every security instrument I have seen.

This will give them the security of knowing it is sold and the opportunity to make more money on the sale of it then just selling it to an investor.

The legal details are more or less the same.1st loan secured by either a mortgage or trust deed.Seller financing providing a second loan and secured by the property.I will let the mortgage brokers spell out the financing details (rates and terms).Be very careful with commercial.

Teardowns with upscale townhomes are within rock throwing distance, but I have several years dealling with the current crowd.

In the case of Net Bank part of the problem was the bad loans secured against real estate.

I have never specifically used options to tie up real estate, but have traded stock options and thought I would throw in my .02 cents on risk.Any option is simply a contract between two parties where one party pays a monetary amount up front (premium) for the right, but not the obligation, to purchase some asset at a set price over a specified time frame.

I allowed a family to move in without a security deposit but they put in a fence in lieu of.