Advice for Funding a Subject To Deal

Advice for Funding a Subject To Deal

Member since 2020 · 3 posts · 0 votes

Hey all, 

I have a potential subject to deal that would cash flow. I would agree to pay off the rest of his mortgage on the same loan terms but I would need to first pay off the amount that he is in the rears (around 100k). How would I secure this funding if I do not have any private lenders? Are there hard money lenders that would provide me this funding? Or do hard money lenders strictly give 60-70% ARV?

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  • Real Estate Consultant · Wittenberg, WI · Member since 2014 · 572 posts · 572 votes
    5y

    Hard money lenders like me would not take a 2nd lein position behind the existing lender at any LTV. Finding a cash partner or someone who has a self directed IRA or Solo 401k who would like to get involved would be your best bet.

    After you catch up the arrears, how much equity is in the deal to protect you and/or your money partners? 

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