Updated over 6 years ago on . Most recent reply
I am not a turn key investor but help me sell a house turn key.
Late in 2018 I found someone on BP that has "their own money" and is now my hard money lender so I no longer have to used institutional hard money with so many rules/restrictions. With this guy we agreed on 10% rate, 1 point, 100% purchase and 100% rehab so I am very happy to have connected with him.
This guy was not super excited about lending money - he is more interested in doing the BRRRR method like me and getting some hard assets on the ground for long term holds. He lives in an expensive part of Texas so investing locally for him is not much of an option which is why he is interest in my Cleveland market.
So part of the deal with was he would agree to lend me money if I agreed to get him a house in my Cleveland market on the BRRRR strategy. So the plan is I am going to buy a house that needs light to moderate rehab, manage the repairs then pass it off to him ready for a tenant and mike a small profit.
What would be the best way to do this to keep costs/taxes to a minimum? Should I buy and rehab the property with his money then sell it to him then he can refinance? Or should he be the one buying the property and I just get paid X amount for the rehab?
Not sure what the best strategy would be for this...