Private money and BRRR
Some years back I knew a private money lender who would work the following way:
If and investor found a house which would make a good flip the private money guy would actually purchase the house himself as well as provide escrow for repair funds. Concurrent with that the Private money guy would give a lease option to the investor where the option amount tied back to the agreed upon monies (purchase, rehab, points, interest). The investor would have the work done and then just before the property was re-sold for ARV the option would happen. This way the lender was secure the investor had access to funds, and both made their money in the end.
I am not sure if I can find this contact or if others would be interested in the same format but if so could something like this be used to get around the title seasoning required for BRRR?
Appreciate any thoughts on 1) are there private money operations that would work this way and 2) can it work?
Thanks