Private lending/hard money lending

[Chris Grooms]

Hello all,

I would like to become a private lender/Hard money lender. I have the money of course, researching for lawyers now..... Any other suggestions? 

[Kenneth Garrett]

@Chris Grooms and 

@Will Pritchett

Private lenders need to analyze the deals to insure they are investing wisely.  You are investing in the individual as much as the property.  Investing with someone who has a track record is important as well.  I have been on both sides.  

I use a private lender for my BRRRR projects. The private lenders fund the acquisition and rehab. I conduct the repairs and rent the unit out and refinance the property and repay my private lender back. Then I can repeat the process. I have my attorney prepare a note and mortgage or deed of trust, depends on your state and the private lender then has time to review the documents (have their attorney review the docs) and request any changes. Funds are wired directly to title company the day of the closing. Never send funds to the investor direct. During the closing, the mortgage is recorded as the first lien holder to protect the investors funds. In the event the investor does not perform you could foreclose. I have one lender who provides the documents directly to the title company just like a bank would do.

I have lent money out as a lender as well and this is the process I follow.  

If you need more specific details you can pm me.