have private money lender... what next
I have networked with several people who are interested and willing to loan private funds. I will be meeting with them this week, to go over what it is we are doing with the capital and details of mutual goals and interests.
now that I am at this point. I need advice on how others close the deal.
1. how or where are the funds held (escrow, LLC, trust)? how are they transferred?
2. once we have a potential property lined up, should the funding be in place already, or have funds transferred after deal is found?
3. how are you securing their capital? are you putting their name on deed?
4. I assume the lawyer and contracts will have to be drawn up for all this to happen.
5. how do you usually pay out interest and/or principle (monthly, quarterly, annual)?
I would like to get all this info before sitting down with them, so they are more comfortable with the process. We plan to group a few individuals together to fund a few flips or new construction.