Private lender title question

5 Replies

Hi all. 

Hey, I have a house I purchased on Land contract as a quick 2 month flip. Flip is over and now I want to rent this instead of taking a profit now.  Contract was for only 4 months.

Friend of mine is stepping in and paying the land contract off with cash. 

Should the title be in both our names? I know he wanted it in his name but didn't talk about both of ours yet. I need it in mine also so I can refinance next year and take some equity and repay him. 

Or should he buy it from me and landcontract it back to me? My terms of the original land contract was only 4 months. Still have 2 months to go and I am already done with the flip now just trying to figure out who holds the title if I get this private money. 

Can someone ecplain? Thanks!

You need to pay off the land contract with your Leander's money....title goes in your name and your lender gets a mortgage...SOP, unless your lender doesn't trust you and is worried about having to foreclose.

I guess I should clarify, should both our names be on the title or just mine? I want the investor to feel comfortable and I want to be covered also. This guy is a good friend. 

I do understand paying off the current land contract with his money, I just need to know what I give him in terms of title. Should he even be on the title?  We are going to talk with my lawyer this week. Just trying to see if anyone had experience here first. Basically he is giving me a hard money loan for a year. 

Originally posted by @Brian Gibbons :

@Joe Villeneuve

Can you help this guy out find a lawyer in MI  to make sure his interest is covered 

I don't like how he's thinking and I believe it could cause a legal mess on him.

 Thanks for the reference.  Based on the post of his below though it appears he has a lawyer he is/will be discussing this with...which is a good thing.

Originally posted by @Joe Villeneuve :
Originally posted by @Brian Gibbons:

@Joe Villeneuve

Can you help this guy out find a lawyer in MI  to make sure his interest is covered 

I don't like how he's thinking and I believe it could cause a legal mess on him.

 Thanks for the reference.  Based on the post of his below though it appears he has a lawyer he is/will be discussing this with...which is a good thing.

Yes, figured it out today. Deed to me, 2nd deed to the investor and myself. 

Both protected. Thanks for the info and quick responses guys!

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