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Updated almost 6 years ago on . Most recent reply

Loaning Private Money in an REO Foreclosure
I am looking for some advice on performing Private Money lending in the Chicagoland area. I have a friend who is looking to purchase a property on the south side of Chicago, but I believe it is a banked owned property. The bank is looking for a Cash buyer, but they do not have the Cash.
I would like to be their Private Money for this transaction, but I also want to protect myself to ensure that my investment is sound. I know there are a lot of factors to look at in this transaction, Fees, time, interest rate, etc. But I am thinking that a Promissory Note with property as collateral would make sense. Once purchased, the friend will put in the money to rehab the property , and then BRRRR the property to pay me back in 3-6 months.
Any thoughts on protecting my investment? Does anyone know any lawyers in the Chicago area who have experience with this type of agreement? Or perhaps contracts available on Bigger Pockets / other sources to get started?
Thanks
Matt
Most Popular Reply

Hey @Matt Talaga, my partner and I know a few fantiastic local attorneys in Chicago if you are in need of a recommendation or referral. Let us know if you are interested and we are more than happy to connect you.