The Earnest Money is deposited directly to the closing agent or bank, of which we will be responsible for unless other specifications concerning investment position are required. 4.

the owner just had a stroke and has other properities. this one is the only fixer-upper, he basically just wants out. i,m taking an equity loan on my house for $40000 for down payment, closing, and a small credit line(about $12000). my main concern is the labor charges of contractors in my area. the on-hand cash would enable me to get local handymen and cheap laborers to cut into alot of the cost of teardown and disposial. also a friend workes for a local home builder and is willing to do alot of the drywall work and floors on the side.

I had (frankly still have) the same questions/concerns as you.

Now, if you are passively investing and someone else is managing then an hour away is much less of a concern.

The only reason I want it in the LLC name is for asset protection from everyone else, I"m not concerned about protection from the lender.

There are lenders who are not concerned but those lenders will charge higher rates, have poor terms and pre-payment penalties in many cases. 6 or 12 months seasoning will open up all the normal lending options.As Scott mentioned you really need to understand the refinance assumptions before heading down this path.If you want to pay commercial rates and terms many commercial programs will let you use the appraised value.

Not a deal you would do if you were investing going forward but better to hold than sell once you are in.It is concerning that you largely have no idea what to do with the money you might pull out other than pay down the primary mortgage.

The borrower is a corporate entity.There is also a lot of scams on the Internet concerning MTNs.

As a followup to my initial post, the costs will not inhibit me from setting up properly - I'm more concerned with the most advantageous setup that provides the most benefits... even if it costs more.

My experience says they are more concerned about the quality of the offer and the bottom line number then they are about if they get some loan business.