Help! How Do I Write This Contract?
Good Evening!
I'm hoping someone can help. I'm a realtor purchasing an investment property using creative financing but I have no idea what forms/contracts to use or how to word the terms.
The deal is being structured like this:
-$200k purchase price
-DSCR loan 75% of the purchase price
-Transactional lender 15% of the purchase price
-LLC (me) putting down 10% of the purchase price
-At closing seller is paying transactional lender and holding note for the 15% and LLC is paying him back $500/mo for 2-4 years with a balloon payment at the end. No pre-payment penalty on the loan.
Any help would be greatly appreciated!
I'm not trying to poo-poo your deal, but what DSCR lender approved a loan for the downstroke? I would like to speak with them about brokering deals through them. I know we don't have anyone that will back a loan with a loan for a down payment. Let me know please. I would love to chat with them.
Quote from @Doug Smith:I’m sure it’s second lien after the fact, but the PML (not T. Funding) is wiring the $ needed as her down payment on her behalf and probably without the lender knowing UNLESS there was plenty of equity and then I’ve seen some accept it. I’ve done this for some folks who have seller carry back, which is the same thing here but 3rd party vs seller.
I'm not trying to poo-poo your deal, but what DSCR lender approved a loan for the downstroke? I would like to speak with them about brokering deals through them. I know we don't have anyone that will back a loan with a loan for a down payment. Let me know please. I would love to chat with them.
I wish people would just say it.
This transaction involves undisclosed subordinate financing. And if/when things go sideways everybody involved will be really unhappy about it.
@Courtney Edwards like everyone else mentioned does the lender ok this? If so their underwriter is going to be the most concerned with how it is written up. But talk to your broker, you are an agent, and should have access to all the forms and help you need.
If you can't get the help you need find an agent who knows how to do it pay them a commission or for their time and get some good education out of it. However I don't think this is going to fly.