Private money and/or hard money loans - structure
Needing some advice/info. I've typically been doing 3 rehabs concurrently with my own money and/or lines of credit. Wanting to do more in 2014. Here's the question:
How to structure with private money or hard-money? I mostly buy MLS-listed REOs and I make strong offers - cash, no contingencies, proof of funds etc. Now, if I will be using private money or hard money, how should I structure this? I can still make cash offers and show the seller my proof of funds (because I do still have enough cash to close if I want to), but at closing the deal will be funded with opm, and the lender will want a deed of trust or mortgage I assume. When buying REOs, they really don't like to see the deal change from a cash offer to a financed offer before closing. Can we just do this with a simultaneous double-close of some type? And the B-C closing would pick up the financing and deed of trust or mortgage from the lender?