Investor · Peoria, AZ · Member since 2016 · 114 posts · 163 votes
I own a home free and clear that is on the market currently. The home is likely a tear down and I’ve had multiple offers fall through because the numbers are very tight in the current market.
Question: I have a buyer that is very interested but just had hard money lender pull out. Is it possible for me to sell to this investor and act as the hard money lender? I.e. ask for $x down and x% interest on the remainder until he refies out or sells? If so, could a realtor right that contract or would I go to some other professional? Also, what fees could/should I charge? 10% down with 8-10% interstate on remainder?
@Randy Smith you can create any terms you choose. No need to pay an agent. Write terms of loan on contract and send to title company. I would escrow rehab funds and release as work is complete.
@Jason Dillard. Thanks for the note. I was planning on paying our realtors as they brought the deal together, and I suspect they would not connect us if they aren't getting anything for the transaction. Have you had any experience with this?
In regards to the funding, I don't think I want to fund the rehab, I just want to fund the purchase of the house. My concern is that I don't want to be out of pocket even more on this property as I've already lost quite a bit on it.
I would pay a real estate Atty to write the contract
just went through years of forclosing on a property because the mortgage was improperly written by a title company. Ended up losing the case. Lucky to get away with not having to pay the borrowers attys fees in addition to my own
lesson learned. Don’t skimp on paying the proper professional to do what I need done