Updated almost 7 years ago on . Most recent reply
After I’ve Found the OPM...
Hi BP,
I am BRRRR'ing and have an old work friend that is willing to invest as a private lender for the purchase and rehab cash up front (1st one found! On the hunt for a few more!). He will get first position lien on the property until I finish the BRRRR and once I refinance, he'll get a lump sum principle plus interest payment for every month his money has been out. Then, we'll do it again.
In your experience, (recognizing the non-lawyer caveat) is this a JV relationship? Can it be covered by just a Promissory Note and Mortgage for each deal we do? Does my lawyer or the title lawyer draft these?
Lastly, what might be the best way for him to send the funds? Direct to Title company? To me? If me, does that create a tax event before I purchase the house and then again with any gains on the refi?
Thanks!
Justin