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working with rehab purchase

August 12, 2011 12:13AM
hi,

i am considering working with a group of people who buy, fix up, and then sell the property.

i would be coming in as the money guy. i have examined the documents regarding the typical purchase.

it has them as being sole owner. this leaves me as a lender with the typical note and trust deed.

i am to receive interest, as well as a percentage of the profits.

it appears as if they open an escrow to buy the property, and then another escrow when it is sold.

i have yet to see the paperwork involving the sale, how the rehab costs are paid, and how things are distributed. although i am told that distribution and 1099s are done thru escrow.

any thoughts on the best way to handle this ?

it would seem best to have the distribution papers signed at the same time that i lend the money for the property purchase. but they need me more than i need them. so i dont think they would be willing not to pay me profit percentage at time of sale, cuz they desire a long-term relationship. i would at the very least be protected by the typical loan documents, as far as my principal and interest go.
Subject Author Views Posted

working with rehab purchase

Hard Money Lender 5510 August 12, 2011 12:13AM

Re: working with rehab purchase

Verve 3265 August 12, 2011 09:08AM

Re: working with rehab purchase

Hard Money Lender 3868 August 12, 2011 10:26AM

Tax question re Hard $ lender

jd 3046 August 24, 2011 05:14PM

Re: Tax question re Hard $ lender

Hard Money Lender 3062 August 26, 2011 09:10AM

Re: Tax question re Hard $ lender

jd 3091 August 30, 2011 02:52PM



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