Updated over 3 years ago on . Most recent reply
Unique Scenario Where Private Money Lending May Benefit?
Hello everyone I'm Tony a realtor in Michigan.
I'm involved in a unique situation in which a client wants to essentially sell his home and still live in it.
He took out a loan which has too high of interest rates currently and he hasn't payed the mortgage in a year.
His credit is bad so no subject to.
The home is lovely and worth $500k.
His neighbor attempted a short sale deal as he owes $330k on top of not paying in a year.
The owner's lender won't take less than $500k.
My idea to help the client avoid bankruptcy and foreclosure is to propose the neighbor and friend buy the home at market value.
This would allow the client to pay his friend and neighbor rent at a lower rate than what he's currently being charged at north of 10 percent.
What's the lowest rate anyone has heard for private money lending?
I ask because the neighbor and friend is an investor.
I'd like to introduce creative financing that I learned from Bigger Pockets Podcast into this potential deal that will help two men I've come to know in this real estate journey :)