Private Money Lender

[Kristyn Bradley]

I was hoping to get some knowledge of anyone that has used a private money lender that wasn't family?

If you found them from an investing group and what is the standard practice.

I need to use one and have found people that are advertising themselves as private money lenders but i just want to make sure it isn't a scam of any sort.

What do they usually require before proceeding?

Thanks for any help!

[Ryan Lee]

Yes I found them from an investing group. After having a good experience they then referred someone to me who was a private lender.

#1 thing they look for is security in the investment. This is there hard money and they want to be sure if you default that they have true equity. The guys I worked with always wanted 1st position.

#2 They want as good of a return as they can get for as long as they can. But sometimes that means that they are willing to take a lower return if they can have the money placed for a longer play. (rental vs fix/flip)

#3 They want transparency. Be honest when it comes to the deals, don't fluff the numbers.