Pittsboro, NC · Member since 2020 · 5 posts · 3 votes
I have a lead through someone I know of a group of retired professionals with money to lend, although they, nor myself, have any formal idea of what to do.
Can you good folks share how you've set up promissory notes, or shares in an LLC, interest rates, terms, etc. on how you've set up deals like this? I'm primarily looking for down payment assistance so I can purchase more in a shorter period of time. I'm about to close on my first deal over $1m and will be cash short after the closing for a while.
I understand normally you can't use borrowed funds for a down payment on a mortgage, although I've seen some posts about letting it "season" in an account for a couple of months. Anyway, I'm just interested in how you would approach, or have approached, the above scenario.
I have a lead through someone I know of a group of retired professionals with money to lend, although they, nor myself, have any formal idea of what to do.
Can you good folks share how you've set up promissory notes, or shares in an LLC, interest rates, terms, etc. on how you've set up deals like this? I'm primarily looking for down payment assistance so I can purchase more in a shorter period of time. I'm about to close on my first deal over $1m and will be cash short after the closing for a while.
I understand normally you can't use borrowed funds for a down payment on a mortgage, although I've seen some posts about letting it "season" in an account for a couple of months. Anyway, I'm just interested in how you would approach, or have approached, the above scenario.
Thanks!
There are a variety of structures you can use depending on how many investors and their role in the deal. You want to search syndication and get up to speed on the laws and requirements.
Returns structure will vary depending on the investors goals, the deal, your experience etc.
You can use borrowed funds for a down payment as long as it's not secured by the property. Most lenders will not allow seconds behind them in the CAP stack. They are ok with equity