** Please help ** 1 year loan for deed + rents
Hello folks,
Really need some sage advice here.
A man who owns multiple properties is having a very difficult time due to 3 main lenders (all hard money) requesting pff of his balloon loan. In short he used HML's to finance rentals. His cap rate was so good, the 12% interest payments didnt matter. The total amount he owes left on his properties is about $1.3 million.
Now he is trying to pay off the loans before they go to auction.
He owns two properties in Hollywood. I've looked at the value and it's over $3 Million combined. He wants a loan of $500,000 and will --- "..sign the deed over until I can pay back the loan. In the meantime you can collect the rents" which are currently $18,500 a month.
First problem: He has a cloud on the title because the properties are held in a Trust. He is named as the trustee but there is a case being filled by a former member of the trust to not allow him to sell or something. He says he has the deed.
- What are my next steps?
- How can I protect myself?
- Is anyone willing to help me on this odd transaction for a split of the rent?
- There is no more information I can provide at this time.
Thank you all so much!