I’ve got the go ahead with a private money lender - now what?

I’ve got the go ahead with a private money lender - now what?

Flipper/Rehabber · Sanford, NC · Member since 2016 · 47 posts · 57 votes
I went to lunch today with an older gentleman I know. He owns the building I rent out for my State Farm Agency. I gave him my spill on real estate investing and he agreed to terms of 1 point, paid on the back end with 8% interest only payments on a one year note. He will fund 100% of the purchase and costs up to 70% ARV. My question is, what now? What kind of paperwork do we need, who should I talk to to get it? Are there resources on BP for me to dive into to learn? Thanks in advance!
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  • Rental Property Investor · Jersey City, NJ · Member since 2017 · 74 posts · 18 votes
    8y

    I'd like to follow this discussion for replies, if that's ok!!! 

  • Flipper/Rehabber · Sanford, NC · Member since 2016 · 47 posts · 57 votes
    8y
    Any specifics about what should be in this agreement?
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    well you say lender  .. so that infers he is going to make a real estate loan to you

    if that's the case super simple.. your in an attorney state simply go to a real estate closing firm.

    tell them the terms they will prepare the note and mortgage.. along with settlement statement when you have a deal to fund..

    that's about it.. not very complicated ..

    the fella from WA who responded I think is talking more about JV type deals and set ups other than a simple one off loan on a particular property you intend to buy rehab and resell. which is what I am assuming is your goal.

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