How Do I Use Private Money? *NOT talking about hard money lender*
Hi BP Fam! I have a friend of a friend who's caught wind that I flipped first property and has money she'd like to lend. (Yeah! Pretty cool!) We are going to have a chat about her lending money for a fix & flip project but I'm not sure how to use private money. Is someone out here willing to really dumb it down and explain how you'd use someone else's money in this type of scenario? (This would be happening in Arizona...if that matters) Only questions I can think of are:
- Does she deposit checks to escrow company?
- I'm sure I have to record a "note"....but not sure how that happens
- I know all terms are negotiable between us, but what are "typical" interest rate and terms
Thanks for your time & advice!
P.S. I've posted some pics of first flip on IG. Feel free to follow @felnoz