Posted by Michael on October 07, 2001 at 23:28:40:
Jamia,
The only reason I would use a hard money lender is if I could buy a rehab cheap and flip to and investor for a few thousand or to buy way below market and sell retail FAST! The key to using hard money to get in and out of a deal quick, because of the high interest.
If you are looking to buy and hold for a longer term try finding deals that you can acquire through lease optioning or buying subect to. Bothing require little or no money and give you the time you want for the longer term cash flows.
I’m an investor in Georgia and I have bad credit (bankruptcy -chptr 13). I’ve established a good relationship with a hard money lender and am able to buy homes. The probelm is that I can’t get out of the high interest loans unless I sell the property and I want to keep some properties to rent for long term.
My question is it possible to but the property through my hard money lender then deed the property over to a “close” friend who has good credit to refinance the property then they deed it back over to me ?
How could this work ?
WHy even use the hard money lender in the first place if the good friend can qualify for a normal interest loan? (Those loans are expensive, just from the points up front usually.) Make sure your good friend and you have an agreement in writing as to exactly what you are doing and why. Can’t imagine anyone putting their name on a loan then deeding themselves off the property to you, but yeah, one can do that.