Private Lender transaction
Hello, all!
I'm seeking to purchase a Multifamily home in Oklahoma City through private lending.
This is out of my comfort and experience zones . I've never been one to ask for money so I really didn't know how and definitely didn't feel comfortable. Well, I put on my big investor pants and decided to try it out and ask around with several people I knew who were a little more well off than others. Of them all, one was up for the chance to try his hand at lending. He is a house flipper but has never lended before and does not know how. He funds his flips with personal money
Now that my comfort zone issue was resolved now for the experience zone haha. I've only don't conventional lending in the past and most certainly do not know how to go about legally accepting the money.
A few things.
Do I need to go through a title company? I assume him depositing the amount in my account is definitely not the way.
How and where should the contract if any be written up? Are there forms here available for that which can get an individual started?
Another thing(off topic. Kinda) I saw was a Hard Money lender one time said he couldn't lend to me if I had money given to me and hadn't had said money in my account for more than 60 days. Are there some that will lend as long as you have funds available regardless of time?
What do terms for private lenders usually look like? Are they short like that of hard money lenders? Or is it just something two or more individuals work out?
Any additional info anyone wants to add that I should know please do. I didn't have much to ask because you don't know what you don't know!
Additionally I'm also looking for hard money lenders that have lower minimum loan amounts as I have some properties that don't require much for purchase/rehab!