Updated over 11 years ago on . Most recent reply
What would you do with this investor?
I have an investor that is willing to lend me $40k at 5.25% interest with an interest only payment for 8-10 years.
The only thing I can come up with to do with this would be to find an owner financed multiplex and use $30k as a down payment while keeping the other $10k for reserves. then refinancing out of the owner financing in 2-5 years. The problems with this though is that with her being listed as a lienholder, the LTV will not likely be in a position to do a traditional refinance.
I thought about putting the $40k in an account to season for 2-3 months and appling for a traditional loan. Downsides to this though is that I doubt she will want to part with her funds before being listed as a lienholder. Also, I would begin paying the $175 / month in interest at that point and what are the chances I find a deal in that time?
So what would you do with this opportunity?