I have a partner that is willing to let me use his funds to purchase properties. I agree to pay him a percentage return for the use of his money. My goal is to purchase REO’s, rehab and wholesale or rent out, (depending on the cash flow of the property).
My question is should I deposit the money into my account ( i figure it’ll send a read flag) or simply go to closing and have him write the check or conduct the transfer? Does anyone require any special forms to be filled out when purchasing in this manner?
Also, does anyone know of anyone still doing No seasoning COO?
Yes, there are still some lenders doing cash out refinances with no seasoning. The remaining Fannie Mae lenders doing this are already starting to wrap it up as Fannie Mae gave lenders a deadline of 12/1/08 on these.
Other lenders like private and portfolio lenders can do these but at much lower ltvs with higer costs.
Instead of having a partner, use a private lender to fund your transactions. Have them create a lien against the property secured with a note. This way, you can do a refinance of that loan with a conventional lender. There is no seasoning period if the loan is paying off a first lien. You just couldnt get any additional cash back.