I have located a 6-bedroom, 3-bathroom foreclosure property priced at $146,000. Looking to secure a short-term private loan for the down payment and closing costs (approximately $35,000 to $40,000). I am proposing to secure your capital with a Promissory Note offering 8% annual interest rate or a flat $10,000 return bonus payable upon [refinance / sale of the property], targeted within the next 12 to 18 months. How Your Capital Will Be Protected: A recorded mortgage/lien against the property signed directly by the Trustee, or
A Collateral Assignment of Beneficial Interest in the land trust, giving you a direct legal claim to the trust entity itself.
Ta, a 6 bed foreclosure at $146K is a nice find. Before you pay for a separate gap loan, it's worth seeing if a hard money or fix and flip lender will cover more of the purchase, since some go fairly high on loan to cost when the numbers work. This is what I do, and I work with a network of lenders too, so message me the address and your rehab plan and I'll see what fits.