Looking for an investor to help fund a deal
Here are the scenario and the players:
Me
Dad
Ms. J- Original 50% equity owner
The others- family members who share 50%
We (myself and dad) bought out Ms. J’s 50% by paying off her outstanding debts. Some were paid off cash, most were paid off in credit. That is why she donated her 50% ownership to (us) my dad. My dad (personally) is now 50% owner of said property.
“The Others” have come to an agreement amongst themselves and has accept our offer of purchasing their shared interest for $133,500. This $133,500 will be split among the 7 heirs. The attorney and title company has the payment schedule that each heir is to receive. Essentially how this is supposed to play out is the money is to be deposited into an escrow that the title company controls and is distributed as each heir signs.
The tenant at residence is already in place. Ms. J will remain in the house as a tenant and pay $1000 per month until she wishes to move. The lease has been signed for this already and takes effect on June 1st 2019.
Myself and my dad will look into refinancing the loan within 6 months ideally. We will refinance home under our company Wellington Investments LLC. We already have the bank on board with us to make this happen. The bank just could not help us with this specific situation as it currently is structured which is why they recommended going this route (hard money/private financing) to acquire the property. We have also paid the taxes for the past 2 years. We have done some renovation and are prepped to finish. Nothing is out of code and there are no liens against this property which can be confirmed by the title company that we prefer to use since they have been working with us since the beginning of this journey. If possible we ask if fees can be added into loan due to us already investing into paying off Ms.J's debt, attorney fees and title Company fees already incurred to get to this point.
Summary:
My dad (we) acquired 50% ownership of property in February 2019
$133,500 needed to pay off remaining heirs to acquire 100% ownership
We are looking to acquire $210,000 in hard money/private money/financing/line of credit
Deal has been reached with help of attorney.
Title company has already cleared property.
We are not looking to flip this property.
Traditional bank is on deck to refi after 100% ownership obtained.