Lien

2 Replies

I have a private lender and they want collateral... I told  them they would be the lien holder on the property that im flipping with money...they responded that they wanted to be the lien holder on my personal assets is that normal? It makes me uncomfortable...

Originally posted by @Kelsey Michel :

I have a private lender and they want collateral... I told  them they would be the lien holder on the property that im flipping with money...they responded that they wanted to be the lien holder on my personal assets is that normal? It makes me uncomfortable...

Time to say "No, thanks" and find another lender. It may be a way of saying they have gotten cold feet about lending to you. 

Private lenders commonly get a 1st position lien on the property, even if they share that position with other lenders thru some legal arrangement. Such loans are typically "non-recourse". If they're asking for recourse, time to move on.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict