Basics of private lending

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I posted this in the tax lien forum, but I realized it would be more appropriate here:

Hi guys, I came across the opportunity to private lend, but this is a new area for me where I don't understand the process and risks.

I am fine with the loan amount, term, and interest rate. The borrower is offering one of several properties of my choosing for collateral.

Some are commercial and owned free and clear (borrower runs a daycare business, has been in business for 20+ years). Others are SFHs but with mortgages on them.

What should I look out for to evaluate this deal?

Some of my own thoughts on what would make this desirable:

1) loan is much much lower than the value of the property

2) if there is no underlying loan and I am in first position

3) there IS an underlying loan, and I am in second position, but the first position loan is low relative to the value of the property and would be worth it to pay off/take over payments.