Buying a property all cash - not your cash

Buying a property all cash - not your cash

Hoboken, NJ · Member since 2015 · 53 posts · 4 votes

I am looking to purchase a property all cash using funds from family. 

$200k from my parents LOC and $200k from another family member.

What would be the proper way to get the funds into my account?

This is of course a loan, how would you properly document the loan? 

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  • Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes
    11y

    Write up a promissory note for each one of them. You can then secure the loans against the property you are buying in the form of a trust deed. Make sure you name them as lost payees on the insurance. Your escrow officer or lawyer should be able to handle each one of these aspects. Even with family make sure it's done right so that you start becoming familiar with the motions and this doesn't just become a one-time off deal.

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