So I’m looking at doing a deal with a private money lender that Iv know for awhile. But I’m extremely new to the concept. I want to use a loan servicing company with the lender being first on the title. But my biggest question is about the tax part. Will the loan servicing company give me an my lender our tax stuff, like me for interest payments Write off An them for money gain taxes. Actually not even sure if it’s a money gain that the lender would be taxed. I haven’t hired an attorney yet to go over this with me just wanted to get some basics together so I know what I’m talking about.

@Devon Angle

Just to understand - you have a person who will lend money to real estate investors and you will service the loan instead of the lender?

If this is the case - the lender will likely issue you a 1099 for servicing the loan. 

The lender hasn’t ever done a loan like this either, so neither one of us is familiar with the process, but I want to use a loan servicing company so that there is a track record of payments an a middle man to deal with all the details. But I’m mostly concern with how the taxation part works when using a loan company.