Private lending deals

[Ryan Van Fleet]

Hello everyone,

I have a question about private lending deals.  I'm curious how private money structures deals. It seems like you can make a deal a little bit more creative then a conventional, but what does one typically look like.

• Do they charge a higher interest rate?
• Do they set payment terms like a conventional?
• How do they protect them self? Do they take out a lien on the property?
• Are there example contracts?
• Do they typical take a stake in the property for the long term?
• Are there any books, blogs, or materials, or private lending?

I ask, because I got a buddy who is considering to use some of his home equality to finance some deals in the future. I told him there are private money lenders, but I don't know too much about it yet. I want to be able to give him a clearer picture of how it works, so he doesn't get screwed. 

Thanks,

Ryan