- Admin
- #6
MJ DeMarco
I followed the science; all I found was money.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
But MJ, How would I hold title to the property and charge him interest on the money ? I could front him the money, charge interest and let him keep title but, if something went wrong I would have to foreclose on him which would cost time and money. Correct me if I am wrong. And I don't believe I would be able to split profits with him this way. I would just earn the interest he pays me.
I am holding title via an LLC that I control. So how do I lend him money and keep title ?
This is why you have an agreement and a contract, properly executed and notarized that outlines the specifics of the deal. If he isn't compelled to act, you are forgoing interest on the loaned funds. For arguments sake, if you forgo $200K, he is getting a risk-free loan. The idea is to share risk and share profits. You are holding the purse.
The reason I am taking an interest on this thread is I am currently discussing a similar arrangement myself, except for luxury homes. I front the money on the home and charge the rehabber interest until the project is done and sold. This compels the project manager to move quickly as each day that goes by, his profit margin erodes.