What is the next step after finding a private investor

[Sheila Villacampa]

Two months ago, I started to look for a private investor to rehab a SHF. Eventually I found my aunt who is willing to loan me half of the rehab cost of 50k with 2% interest in the first 12 months. And balloon payment with 8% interest at the end of the 12 months term. This also comes with a promissory note and a deed of trust. My questions are the following: 1. I understand that a promissory note contains the terms of the loan, is the manner of withdrawing the money be included and should it be tied to the rehab phases? Should I have a promissory note be reviewed by a lawyer? 2. Can someone walk me through on how to do the deed of trust. Is it simply to approach a title company and arrange for a closing? 3. Is it possible to close on this in a month? All of this is unchartered territory for me and I want to do it right the first time. Thanks so much for your help.

[Michael Wentzel]

@Sheila Villacampa

Best case scenerio, you get it down in less than a year and you're fine. My plan B would be to have another private lender who would be willing to come in with a 2-year term at the end of the 12 months if it doesn't look like you can finish in 12 months. Basically they would pay off your aunt and would start the clock again with them. Not ideal, but if it is your first renovation or flip, the timeline often goes long. Even if it is your 10th or 100th flip, the timeline often goes long. It looks like you're taking some great steps in the right direction.

Mike