Posted by Bud Branstetter on April 26, 1999 at 13:00:14:
By buying with cash you should sustantially reduce the cost that would normally pay to the mortgage broker. You should not need to show anyone where the money came from. Just have it wired to the title company doing the closing. Unless this investor is very naive and trusting you will secure his interest with a note, deed of trust/mortgage and mortgagee title policy.
The investors tax liability is paying the taxes on the interest(or profit) he receives. You deduct that interest as an expense. You will pay tax on the profits when you receive them.
You did not say what interest rate the mortgage broker could get you. So we don’t know if the fees offset a reduced rate.