Family Member Lender Protection and Entity Questions
I am investing in and around Minneapolis Minnesota. I have been working on finding funding for Rehab projects. I have found family members and friends that would be interested in loaning on deals. I want to make sure that these important people in my life are protected properly in these deals.
Questions that come to mind:
- Do most lenders create a business entity for their loans?
- Do usury laws apply when the lender is secured in the first position of a mortgage deed? Minnesota law seems to not restrict interest rates on mortgages MN Law, Law Summarized in Paragraph 4 by MN Lawyer here
- How else can a family member safely be brought into a real estate deal as a lender? Is a partnership appropriate in this case?
- Other than securing the lender with A Promissory Note, Mortgage Deed, First Payee on Insurance Claims, and Personal Guarantees what else should the lender be secured by?
- Anybody know of good attorneys to send lenders to in Minnesota so that they can do their own due diligence?
