Putting A 2nd On Sub2 Property?

ZinOrganization profile photo

im in the process of aquiring a rehabb project which im going to take sub2, im looking at 30k in repairs. i want to seek out a private investor who is willing to put up the rehabb money secured by a 2nd mortgage or promissary note. my question is whats the best way to structure this, if we record the 2nd mortgage on title will the bank say "whys there a 2nd in someone elses name" i will be taking title in a trust and will be the trustee so maybe it wouldnt look so bad if the mortgage was for the trustee of the house. or do you think i should just keep it unrecorded if i find a willing investor. any thoughts?

Comments(5)

  • ZinOrganization16th February, 2005

    thanks matt, thats the only thing i was worried about.

    as for the deal im in at about 50% L.T.V. with over 100k profit after repair, so i dont think that will be an issue.

    as for defaulting, if it came down to it i could put up the money myself but would rather not tie up all my funds in one deal, and not be able to do others. i plan on paying a 12-15% interest on the 30k 2nd within six months time, witch is alot better for me then funding the whole thing out of pocket.

    thanks again.

  • ryand16th February, 2005

    is this prop is gaylordsville? is it rainbow colored?

  • ZinOrganization16th February, 2005

    oh go back to looking for lost mortgages!

    its lost because i went to the recorders office and cut the pages out. moohaha

  • ryand16th February, 2005

    im calling the police then

  • JamesStreet17th February, 2005

    Just wondering if any of you have put a line of credit against a sub-to property? I bought a tri-plex last year that has about 30,000 in equity that I would like to tap. Can it be done?

    Thanks J

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