Hi, I’ve got a deal lined up but am confused about the final funding. I have a private money lender(family member) that is going to fund the deal. The problem I’m running into is how to have the funds applied and still have the property in my name? If they wire me the money aren’t there tax implications? I’m getting conflicting advice and was having trouble finding an exact answer in the forums.
Is this lender financing the entire purchase? If so and they are taking the property as collateral this sounds like a standard mortgage situation.
If that is the case the lender will work with the title company to ensure all documentation is complete and wire funds to their escrow account to close the transaction.
The property will be in your name as the owner, the lender will then have a first lien position on it.
Disclosure: I am not an attorney and recommend you speak to one. I am a private/hard money lender.
@Jeffrey Calabrese thanks! This is exactly what I was trying to find. So the proof of funds to make the offer will need to come from my private money lender correct? I will be putting 10k as a down payment. Does it still work the same?
That should be the case (even though I am not an expert in TX RE law).
Additionally, I would make sure you still have a mortgage contingency clause in the contract in case the funding falls through.