I'm closing on my first BRRRR property on Monday. My private lender was going to wire the purchase cost and renovation budget to the title company, and I was told that title would send me my renovation budget at closing. Today they called me and said it's not possible for them to send me the money. Is this true? I thought I had read that this is normal???? What do I do? I need some help!
Who is your lender?? Are they for real??
I have my lenders do that all the time. BUT they are usually friends or family. Maybe they will only send the money for closing and will fund once the items are rehabbed? Communication with your lender is key.
Hi Rick, this is a friend of mine. Let me clarify, the Title Company called me today saying that my lender needs to send the money directly to me. From what I understood, it was normal for the lender to just send it all to the Title and that Title would disperse funds. Maybe I'm wrong, though. Do you know what the most common thing to do is? How do you then set up the deed of trust, and do you have one or two promissory notes for purchase and reno?
You call the title company and tell them that you need to have the deed of trust for the full amount of the loan. They will disperse funds at closing to you directly. There should only be one loan on the property. You pay an escrow fee for them to handle money for you. they need to handle it like YOU want them to handle it.
This is super helpful! Thank you! Going to do that this morning.