Hard money loan on deal

[Andrew Parsons]

if someone is selling a property with a current hard money loan. Can you structure a deal like this. 

Have the seller add you to the deed and you refi cash out to payoff hard money loans and provide the seller some additional cash?

Thanks for your insight 

[Chris Seveney]

@Andrew Parsons

The seller would still be on the deed - why would you do this versus just buying it from them?

I see no benefit and only downside.

[Eliott Elias]

Why not just buy it with financing initially? Hard Money Lenders will not allow you to assume the loan.

[Andrew Parsons]

Thanks for the reply’s - The reason is to try to get this property without putting any money down. (20-25% for a vacation property)

Can’t Sub 2 

Can’t assume the loan

Thoughts? 

[Tarik Turner]

Property would have to be held in an LLC and you would have to be added to the LLC as a member, the previous owner would also have to remain as a member

[Doug Smith]

Hi Andrew, Many studies have been done about the relation of down payment amount and default risk. The default rate increases exponentially the less a borrower injects into the deal and when you couple that with the property being non-owner-occupied, I don't know of a bona fide lender anywhere that would do that. I'm sorry to be the bearer of bad news.