Private money lender

[Yulanda McAllister]

Hello I am new to real estate and have the opportunity to become a private money lender. What do I need to know before I jump into this and what documents do I need.

[Percy N.]

Yulanda,

    The key things I would like for are:

- Borrower's credibility (integrity, experience, etc)

- The project and true ARV (get you own appraisal)

- Full title search and insurance

- Has to be investment property in PA otherwise usury laws apply

- Other assets of borrower with personal gaurantee

- If construction is involved, who is the contractor? Set up draws for completed work

- Structure it as points at closing and then an agreed to %

- 6 months loan, at least interest paid monthly

- +2 points for 6 month extension

- See if you can do a contract for deed vs having to go through foreclosure

Hopefully your courses covered all of the above. If not, PM me.

Where is the property located?