HML Holds Title; Refi to Conventional Loan

[Zoran M.]

Hi all, 

The HML I've used for a number of deals holds the title to the properties that I flip w/ their financing. When I sell the property, they cut me a check equal to my profit on the deal. This is fine.

I would like to use the HML for a buy & hold strategy, which would obviously involve a refi after a 6-12 month seasoning period. However, since I do not actually hold title to the property (the HML does), that creates a bit of an issue for me. Typically we've done rate & term refi's with our lender (private money to conventional), but that would not be possible in this scenario as I do not hold the title and the HML does not hold the note.

Any sense of how I can get around this issue?  Could we put the title in escrow? 

[Jay Hinrichs]

If Ohio is a mortgage state with a long foreclosure process then I can see why the lender wants title... they are not a lender at that point as described above but they are a JV partner. I do this exact same thing with my Trusted flippers... works great... No debt on property no payments to be made very simple they do what they do then we split profit at the end everyone gets paid off of the HUD and no one gets money early. we all get paid on the exact same day I like that aspect..... I don't take the lions share the flipper does in my deals... And unlike the guys in Florida I don't charge 7500 for the privlage of showing me deals that I may or may not do LOL.

Having been a HML in the day this set up on OUR side is so much easier than going through the loan process.. But its also not an arrangement you make with a typical borrower its an arrangement you make with very close knit associates that want access to substantial capital.. Many of mine have 7 figure with me... And I run their entire A and D for their flipping business... I would not do these deals one off and or advertise for them which I don't etc etc. Its not the HML business...Its the long term relationship business.