I had a meeting with a Private Real Estate Investor today. He stated his company do not lend money to purchase properties, but instead owns 30 to 40 properties 1 to 4 units. I would choose a property that best meets my qualifications in return make monthly PITI payments. After a year so I would find a Bank or Credit union to refinance the property. The one thing that made me nervous he stated the property wouldn't be in my name until after I refinanced. Is this normal business practice when dealing with a Private money lender?
No this is not a normal practise and something to avoid. It could be different where you are as I am in CO, but here, the private lender would have the promissory note and a deed of trust but you would still take title to the property. It would be no different than how a bank does it. Something sounds very fishy about that and I would run far away from that no matter what claims they make. there are plenty of investors out there and plenty of other people to partner up with.
Thank you very much Colin Smith for responding, He was very vague with details. I will take your advice.
yeah run something shady there
Sounds rather fishy...
Hi Sam was the guys name Ben Muller?
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