I have a little under $70k underutilized and I want to lend it with certain ROÍ, how can I do that? What kind of paperwork do I need to make sure I will get my payments? What is the process and steps to become a private lender?
@Alvaro Rodriguez I am not a private lender, but I suggest hitting up some REIs, finding some other hard money lenders and simply asking for their paperwork/contracts. Also I suggest looking into syndication deals. Cheers
pretty easy.. find a borrower .. open escrow at title company.. have lawyer draft the note title company will draft the mortgage or trust deed.. close and your done.
@Alvaro Rodriguez there are a few ways. First you can invest passively in multifamily/commercial real estate. This is known as a syndication. This is where you would get shares of the investment as a passive investor and maintain an equity stake. You would get paid on the cash flow and profits at sale or refi.
You could become a hard money lender, as suggested above
Investing in NNN lease commercial is fairly passive (Walgreens, Dollar General, etc)
Here are a few articles on syndication:
@Todd Dexheimer thanks a lot. Will read them all
While you're looking to become a private lender, I hope you considered the tax consequences as they are not beneficial, especially if you're a W-2 employee. Your private lending income is an ordinary income and will be taxed at your W-2 rate. I'm not a CPA, so definitely consult your CPA prior to making any moves.
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