Got a call from an investor who said the lender he’s been working with has a few properties that I might be interested in. The lender wants someone to take over the rehab debt that’s on the property, with zero down, and have my own financing within six months.
My question is, if I was to take over the payments on what ever is left of the loan(rehab loan), would that mean I have the rights to the property? And find my own financing after six months mean I would just have to find another lender to lend me the rest of the money(mortgage)?
Please feed me your inputs. I want a clear understanding of how this works so if I do go forward with the deal (after looking at the properties and numbers), this would be my first investment. Thank you.
Sounds like the lender is a hard money lender who had another investor default on the loans. Sounds like they want you to buy the homes, and he will continue to finance them for 6 months. Within 6 months, you will need to rehab them and sell them or refinance them.
Would it be a good idea if take the deal (after looking at the numbers). Now, what would cost the first investor(s) to default on the loan in the first place? If I take the deal, what othe things should I know before hand and how do I go about obtaining this information? Thanks again for responding!
You need to be VERY CAREFUL with this deal. The numbers need to be right (far below market value) and you need to be able to sell at well below market value very quickly. What happens if you can’t sell or refi in the 6 months? Will you lose the property too?