How do I secure Hard Money...(the details)?
I can't find a definitive answer on these questions. Please help.
I want to purchase an REO property at about 70% market (accepting cash offers only, as I understand it). I have $22k (13%) down and the loan would be a total of $170k (including rehab construction). I want a hard-money loan to purchase this REO, fix it, and "cash-out refinance" to pay the debt on the hard-money (85% LTV, etc). I expect to pay 2-3 points and 9% on the Hard Money. My problem so far is as follows...
If I haven't bought the property yet, then how can I secure the funds? It can't be a regular "Trust Deed" right? That would have to be afterwards, as I imagine. So how do I secure it prior to the transaction and show proof of funds in my name (or do funds have to be in my name)?
Can it be done through a standard form or would I have to write something up stating that I would only be using the money for purchase of real estate...and so on, as needed?
Help!
Thanks.
'red
I couldn't find another thread with this information. Any help would be appreciated. Thanks.