In Search Of Help -- Getting Paid To Use My Credit
I have a friend who approached me with a deal. He owns a house, said he bought it for 280k (N. Miami Beach area) and he wants money out with a good rate, so he wants to sell the property to me for 355k and then use the proceeds for other properties for sale and/or deals he is working on. Basically he wants to pay me for using my credit. He will rent the house out for a while and then sell it later. He is a good friend and trust that he will not screw me. I am not sure how much i should accept for this deal.
He first offered 2k, then i said i need more, then we talked about 5k cash after closing, but is this enough or should i ask for 5k cash at closing and then a perdentage after he sells it. Houses in this area do not last once they go on the market, they have been increasing for the past couple years as it seems everything has here in S. Florida.
I need to let this guy know by tonight or tomorrow. I alredy agreed to help him out, told him we would figure out the money later, that was last thursday night.
In general if I were to let someone use my credit what should i charge them, i ask this for i have another friend who i am dealing with on a new condo conversion and there is a possiblity to work with him on another condo coverstion coming up soon, i may be able to do four condos as investment property (I work with both friends, who happen to be in the mortgage broker business, so i am getting great rates and they are taking care of the rental side and will give me money for taxes unless i am able to complete a 1033.)
Please respond soon if possible. Thank you.
What ray_higdon is saying is that, would you prefer to A) have $40,000 earning $0 or
B) pay $240/month to use that $40,000 that will be making you $650/month and net you $400+/month.
Think about it.
roboxking - Exactly!
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