Lender Protection

[Carlos Arjona]

I wanted to get your thoughts regarding different steps I can take to protect a private lender as much as possible. I have a friend that's interested in lending me some capital to acquire a property, but he doesn't really have any understanding about real estate investing. I want to reassure him and let him know that he will be protected. Maybe give him first lien rights on the property and create a note that will allow him to take possession of the property if I don't meet our terms. Some type of insurance. I don't know. Any suggestions would be appreciated. Thanks!

[Austin Lazanowski]

Gotta be careful with dodd frank these days. I hear alot of people are creating LLCs and doing a business to business loan to work around, but people can lose their shirt if they're not following the laws on private lending. Not trying to be a downer, just letting you know.