Someone whom I met recently came to me with an offer. They have a house they are closing on... and they need some $... and fast...
I am new in this lending space... and he said he is new in this type of situation as well. I'll put the numbers down below... Closing is supposed to be tomorrow! I just came into the picture today (about 24 hours ahead of closing). Lots to sort out...
The pre-settlement HUD says his LLC (only)... as a lender I want to be protected... so can we change the HUD to also include my LLC too at this stage?
Purchase Price $35k (my money into the deal)
Rehab & Holding costs (the person who presented the deal's money) $45k
Total Cost (Purchase + Rehab + Holding Cost) = $80k
This is a low LTV from my (lender) perspective... but want to expedite closing but with adequate protection. If there cannot be not two LLC's on title... are there forms/contracts/agreements that anyone would suggest? This is a WIN-WIN but we need to push it over the goal line quickly.
Thanks in advance for any help!!!
@Dave Godfrey have the potential borrower get an extension or pass. A lack of planning on thier behalf does not create an emergency on yours.
There is no reason to rush into an uninformed transaction. Get all of your questions answered and proceed or punt. There will be no shortage of opportunity to lend if you pass on this deal. Persevere!
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