All Forum Posts by: Tim Johnson

@Jaime Brame welcome to BiggerPockets!

Has anyone seen an example of a lender combining debt with equity on a real estate deal? e.g. is it possible for someone to lend $100k on a deal in exchange for, say 6% interest rate plus 10% share of profits?

Related: Is it possible to do a convertible note when lending on a deal? i.e. Lend $100k on a deal for typical terms, but with the option to convert your loan into an equity stake in the future?

Would some kind of deal like this ever make sense to you? Under what circumstances?

No experience with them but that sounds pretty sketchy...

@Deren Huang interesting topic, I am following...

p.s. what does "Strategically Targeted" mean?

Thanks all for the pointers.

I contacted the escrow officer at the title company today and explained my rookie status - she was happy to explain what I need to do, and also happy to hear from the lender so early in the process. She said 98% of their closings involve banks and only 2% have individual lenders.

We'll wait on the buyer's lender to indicate that they are ready to close - she expects 5 days notice before scheduled closing date. I will be included on the settlement statements as an interested party and will give my OK for their payoff figures. I'll send a notarized release of lien - they'll provide a template. Then they wire the funds to me after closing is complete.

Obviously the buyers still need to approve inspections and make it to closing, and title company's RE attorney has to issue an opinion on the abstract (deal is in Oklahoma). Outside of those loose ends, looks like this should go pretty smoothly.

Welcome to Tulsa Jennifer!

PM got in touch with the police - wish I could make this up... apparently the tenant, alone with her child, was scared by a contractor knocking on the front door - so she called the cops. The contractor had arrived as scheduled and tenants were already notified the day before, but tenant was scared because she thought it was someone else at the door.

And it wasn't five cop cars - it was one cop at the door responding to her call, and two down the street waiting to backup just in case.

So, today has significantly improved: no-one was murdered at the property! It was a misunderstanding and miscommunication. Very sketchy situation, regardless. 

@John Koontz Thank you for that advice.

Bumping this - my debtors just got a contract signed on their property. 

This is my first loan and I don't want to cause any delays with their closing process.

What should I be doing as the lender to make this process go as quickly + smoothly as possible for all parties involved? Should I contact the buyer's bank or wait to be contacted?

@Frank Chin He called me as soon as he found out about it, waiting for more information.