How to structure a private money loan?

[Niv Nissim]

Hi everyone!

I’ve got a private money lender (a friend of mine).

I would appreciate if anyone can explain me how does it work in 2 different cases (regarding what should I tell the title company? What documents do I need to give or sign with the lender? Where does the terms of the loan written- is it also with the title company?)-

1. Purchasing a new property with a private money lender.

2. Getting a loans from a private money lender when I already own the property (paid with cash).

Thank you very much for your help!

[Chris Seveney]

Quote from @Niv Nissim:

Quote from @Chris Seveney:

@Niv Nissim

Sorry I read it wrong you are the borrower I thought you were doing the lending

Private lending and conventional lending are pretty much all the same documents

The difference is who lends the money.

The terms are created by the lender and realize private lending terms will typically be significantly more expensive than traditional lending

 Yeah that’s what I thought..

Thank you!

Who is responsible for drafting the agreement? Me or the lender? Or is it up to our decision?

 Lender drafts everything, typically they have an attorney and title company handle it all