We have a hard money loan that we are refinancing with our husbands - the property has been rehabbed, its just not selling. It is a unique property in Galveston and will take some time to find the right buyer. Hindsight, we shouldnt have done the deal, but here we are.
For the refi:
One will get the loan in their name
The other will put up the cash for closing. (Debt to income is too high to be on the loan)
When the property sells, how are the proceeds split? Each will get 50/50, but does the person that put up the cash, get the original cash back plus the 50% OR the cash downpayment taken out of the 50%?
What is "normal?"
When we partner on a flip, each party's expenses are first reimbursed from the proceeds of the sale. The remaining money is the profit and is divided equally between the partners.
In your case this would mean that the down payment would be reimbursed and then the remaining funds would be split.
Your post is a little confusing but I think this is what you're asking, right?
I hope your property sells soon!
Thanks! You answered by question.
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