Re: Hard Money Lending - The Line? - Posted by RSwan
Posted by RSwan on July 16, 2002 at 17:28:03:
Thanks for the repy.
Here’s another step in my question. Is it possible to “invest” in a real estate transaction rather than “loan” money on the transaction?
Here’s my thoughts. I would like to invest money as a private money investor as a principal party to the transaction with a rehabber for the purpose of a real estate purchase/rehab, secure the investment with a promissory note and mortgage and set it up to pay a rate of return and points on the money. If the rehabber defaults, title is “bought out” and transfered to me for any points and interest payments made to me by the rehabber. Thus the rehabber is bought back out of the deal under some terms agreed upon between the private money investor and the rehabber. This buyout aspect of the transaction is the “stretch” that I thought may make the deal an investment rather than a loan. Is this too much of a stretch or does it sound reasonable?
If it’s too much of a stretch, what state office would I start with to find the state lending regulations.