Updated over 4 years ago on . Most recent reply
Guidance/Advice on securing Private Lending
I'm in an LLC with 3 other members. We currently have 1 property that cashflows $200/month. We finally have enough capital to purchase another property with a 20% downpayment, but we don't want to go down the traditional path for our next property like we did our first, we want to BRRR it. We would like to secure private lending so we can buy a distressed property with cash, and use our current capital to fund the rehab, then cash-out refinance it. Below are 2 things we are struggling to get our hands on/minds around.
1. Private Money - We are at a roadblock on getting private lending. We have asked family and friends, but to no avail, we keep getting rejected. We aren't giving up, but we would love some advice/tips on securing private money, maybe we are just looking in the wrong places.
2. Contract/Promissory Note - We understand we will need to get in contact with a lawyer and get a Promissory Note drafted out. We have read that we will need some type of collateral that ties to the property, like a Deed of Trust, in the event that things go south. Then of course all documents will be notarized, but we just want to make sure we aren't missing anything important in this process.
Any advice is welcomed, thanks!