Private Lender question

2 Replies

I have a friend interested in lending on a BRRRR property. We have worked out terms for points and interest. He asked if the property would be in his/company's name until work all done. Or if he would be on title etc. If not, what protections does he have as a lender?

Hopefully you keep the property in your name. His name or his company name will have a lien on the property in the form of a mortgage or deed of trust. If you dont pay him, he can foreclose on you. That is the way Wells Fargo does it, Chase, Bank of America, etc. When you close at a title company they will contract with an attorney for the legal documents. All you have to do is tell them the terms of the mortgage and they will have documents drawn up for you and your lender.