extremely short term lending advice needed
Hey friends,
For the last couple years I have been coming back to this site for information and just recently I thought that I would stop reading and start physically attempting to put deals together.
For me, it had to be the multi-unit (multifamily) route. I've gotten myself into talks about a 4 unit property out of state that nets 30k yearly, and the numbers look good (based off of the analysis tools and other information provided in forums).
The big question for me, all 4 units fully rented out, and there is no loan or lien against the property of any kind. It had a complete rehab 5 years ago, but has not been appraised or is refinanced since the work was completed. There is a creative financing method I thought I would attempt to convince the seller to agree on with me.
Basically, I we could go on a partnership deed together temporarily, then refinance the property, I give him his asking price, and pocket the remaining funds. I'm cash strapped and credit strapped however, given the income flow of the property, and the fact that it is worth much more now with the rehab out of the way, this would be an excellent way for me to break into the world of multifamily investing.
IF this creative structure doesn't work out, how hard would it be to have a hard money company provide me with the funds to purchase the house with a written intent to refinance the property as soon as I take ownership. When I complete the refi, I would pay the lender the full amount that I borrowed, and would still be putting the remaining cash from the refi in my pocket.
How viable would this structured plan be if my initial plan to get in with nothing down ends up flopping?
Thanks for your input people!