I have competed 5 flip to landlords and working on 6-7 now and a filp to sell. I am now being approached by private money investors (friends and family) about investing. Looking for a couple people that have borrowed or lent money with private funds. I have a few questions. Please NO hard money lenders ( I already have two HM lenders I work with on deals)
1. What rates are you doing now? Looking at 10-11%
2. How do you handle the repairs portion? All up front or draw on escrow? If escrow, how do you set up the escrow?
3. Can title company prepare all paperwork for the lien or should I use my own real estate attorney?
4. Are you utilizing an appraiser to set ARV or comps?
Thanks for any help!
Congrats, I hope to get to your current situation, but I'm not there yet. The beauty of private money, as I understand it, is that the two of you can decide the terms and process. Make them as easy on you as you can. If they trust you to have the whole amount up front- why not? If they are happy to take your expert estimate on ARV, that's cool. If they want a third party, that's no big deal, either- find a friendly broker. Same on rates. I don't have an answer on your liens, I suspect that depends on where you are in the country. Good luck!