Needing some advice/info. I've typically been doing 3 rehabs concurrently with my own money and/or lines of credit. Wanting to do more in 2014. Here's the question: How to structure with private money or hard-money? I mostly buy MLS-listed REOs and I make strong offers - cash, no contingencies, proof of funds etc. Now, if I will be using private money or hard money, how should I structure this? I can still make cash offers and show the seller my proof of funds (because I do still have enough cash to close if I want to), but at closing the deal will be funded with opm, and the lender will want a deed of trust or mortgage I assume. When buying REOs, they really don't like to see the deal change from a cash offer to a financed offer before closing. Can we just do this with a simultaneous double-close of some type? And the B-C closing would pick up the financing and deed of trust or mortgage from the lender?
A few years ago we were buying a lot of REO with a lot of OPM. The way we did it was to setup limited liability partnerships with the money partners and buy in the name of the LLP. That won't work with hard money lenders but with private money, this could still be a possibility.
