I have a deal pending and after talking to the mortgage broker yesterday my credit has dipped since I became self-employed last year. It is now down below 680. If I can find someone with a 680 or better credit score I believe that we can do an interest only note with a very low rate.
If I can get it done this way then there is about $20,000 profit on the front end and about $10,000 - $15,000 on the back end plus a small monthly positive spread.
What is the best way to structure this deal? This is for a short term hold - probably 1-2 years only. Then cash out. I guess the note stays in the name of the person whose credit we used? Right. Also, we can show a rental agreement showing payments will be more than the monthly PITI payments.
What else do I need besides someone with the credit?