Can you offer Seller-Financing, Owner Carry Back when using a HML?
Newbie Question, need some advice, anybody?
The hard money lender will have a lien on the property for what you owe them. So you could carry back your equity (the difference of what you owe the HML and the price you sell it at).
The big question is why would you do that? Hard money is expensive to carry and usually setup for short term.
The big question is why would you do that? Hard money is expensive to carry and usually setup for short term.
Tom is right. HML’s are generally looking for a quick return on their investment.
The rates are high to help ensure that this happens.
You can offer a seller carry back if you sell the note to a note buyer and use the proceeds to pay off your HML. The easiest way to do this, is to offer Seller Financing.
You take back 2 mortgages. You hold the 2nd and sell the 1st. You cash out the HML using the first and hold the 2nd to make a nice monthly income as if you were renting, just as the bank, you don’t have to manage the property.