All Forum Posts by: Jeremy Viele

It should only take a week or so to close. It just depends on the speed of the title company. There are many ways to get the money back. In the end, you get it back. Get it back the exact way you intend and call multiple lenders until you find one that fits your need. The way you explain, it is just like financing up front with 25% down, only you get the added benefit of quick closing, less costs, and the potential to add value (which reduces your out of pocket costs when you pull it out in the form of equity). Plus, you don't have to meet the minimum requirements in terms of property condition when you pay cash, whereas, that is harder to lend around. Once your rehab is complete, call lenders and tell them how much cash you want until you find the best deal (it will be even more advantageous to have it leased out while searching for an equity loan). In the end, still having 25% equity in a newly rehabbed property seems like a safe investment as long as it cash flows reasonably- full leverage maybe not so much.

I just recently paid cash for the first time. I would start by contacting the title company that is conducting the closing. You probably have to drop the deposit off in escrow there. They will take care of the rest. You will show up and sign a few papers and be out of there in no time. Make sure to arrange transfer of utilities and other things that are often overlooked when closing quickly. 

I have been referred to Michael Durr as well from multiple people. 

Usually between Facebook and Craigslist, I have gotten a lot of inquires but those aren't generating much after 1 week so I am going to try all of the others suggested and I will report back. There are some great suggestions here. 

Hit enter to soon.. I guess my response wasn't directed exactly towards the question. I think it is a good deal as long as all properties can be assigned a value and the cash flow for that property matches makes sense. If all properties are good then it sounds like a great opportunity! It should be relatively low risk with him being the financier.

I like to look at each individual properties cash flow rather than the aggregate flow. If 8 of the 9 are break even, and one is +$400, that would mean you don't have much of a buffer

I agree for sure only because I know how my parents are. They wouldn't be putting their neck on the line and they know the risks. I'm sure that isn't to be said about all relationships because some parents do risk their stability to help and maybe deserve to be paid back first. As far as forgiveness goes, I don't think parents with go into that deal with an unforgiving mindset. It is probably harder to reestablish trust with private lender and we know it takes about 7 years to repair your institutional credit.

Thanks for the input! 

All of my financing is conventional and paid timely. It's seems the common answer is to do whatever it takes, which presumably would have already occurred prior to picking which one to pay. I was looking for answers coming from a little different angle; bank, parent, or private lender.  One is not getting paid, so which two are more beneficial to pay and why. 

thankfully this is only a fictitious conundrum! Thanks, you too!

I can dig that. My partner and I kind of have the same thought in which succession to pay. We were doing some painting the other night when we just started discussing it. My approach was to pay the Private funder back first because this is most likely to be your most loyal investor regardless of your FICO/institutional credit and that is one that will not be repaired in 7 years if you break that trust. 2nd would probably be family if it was their first time lending to help instill them with trust, and work with the bank as best as possible throughout. The bank can credit can recover but the other 2 may not.