Private Money loan structuring

Private Money loan structuring

Greg NeumanPro Member
Antigo, WI · Member since 2017 · 40 posts · 11 votes

I’m interested in finding advice, topics, articles, videos, etc on the topic of private money. I understand the basic concept, and how to raise it, but want to get detailed information on some of the options of structuring the agreement. How to determine the length of the agreement, the interest rate, payment amount & frequency, how to “insure” the private loan (with a promissory note or other options). I'm interested in the different approaches of buy & hold, and fix & flip, but mainly the buy & hold route.  I thought I had found an article on BP at one time, but cannot locate it now. I appreciate any advice and help directing me!

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
9y

@Greg Neuman, A few years back I wrote and published a book titled "Real Estate Investors Guide to Private Mortgage Financing".  If you or anyone else wants a copy, just email or message me and I will sent you a complimentary digital copy.

Private Mortgage Financing Partners, LLC
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  • Investor · Grosse Pointe Shores, MI · Member since 2017 · 160 posts · 74 votes
    9y

    Looking for the same information, so I'm giving this a bump.

  • Rental Property Investor · Ålesund, Norway · Member since 2017 · 48 posts · 24 votes
    9y
    Me too, input appreciated :)
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    9y

    @Greg Neuman, A few years back I wrote and published a book titled "Real Estate Investors Guide to Private Mortgage Financing".  If you or anyone else wants a copy, just email or message me and I will sent you a complimentary digital copy.

    Private Mortgage Financing Partners, LLC
  • Investor · Parker, CO · Member since 2016 · 59 posts · 37 votes
    8y

    I’m interested in setting this up as well and just sent @Don Konipol a message.  Big Thanks for sharing your document!

  • Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes
    8y

    @Greg Neuman @Katherine S. @Severin Sadjina @Mike German

    There's lots of options under the sun for private financing structures. Direct lending, partnerships, preferred equity, Seller financing, private lines of credit, etc. There are a lot of great resources out there that focus on "how to raise private money," but there aren't that many guides on how to structure the straightforward Promissory Note and Trust Deed. This is not a promotional plug at all, but we put of lot of that information down in a book called The Savvy Seller that could be really beneficial to you. There is simply too much info to send along in a forum thread.

  • Greg NeumanPro Member
    OP
    Antigo, WI · Member since 2017 · 40 posts · 11 votes
    8y

    @Neal Collins

    I appreciate the reply and pointing me to a source I can read.  Can you tell me if it is only available as an E Book, or are there hard copies available?  I'm planning on checking it out soon!

  • Investor · Parker, CO · Member since 2016 · 59 posts · 37 votes
    8y

    Good call @Neal Collins and you are correct.  I’ve found the money and looking for the simple approaches to set up the deal for a “debt” partner in 3 off-market duplexes in the Columbus, OH area I’m pursuing.  A sent a note to my attorney this AM about some basic structure and set up as well.  I’m curious on what the average rates people offer (assuming 5- 7%); what average duration is for a buy/hold rental loan that doesn’t need much work (just steep down payment).

    I’ll check out that book- thanks!

  • Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes
    8y

    @Mike German With private debt it really depends. We've sourced funds from family and friends between 4-6%. Professionals and more savvy investors and lenders between 6-12%, and hard money 12%+. It all depends on the deal and the timeframe, though, because even 8% interest on a buy and hold in a hot market could be prohibitively expensive.

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    8y
    Originally posted by @Greg Neuman:

    I’m interested in finding advice, topics, articles, videos, etc on the topic of private money. I understand the basic concept, and how to raise it, but want to get detailed information on some of the options of structuring the agreement. How to determine the length of the agreement, the interest rate, payment amount & frequency, how to “insure” the private loan (with a promissory note or other options). I'm interested in the different approaches of buy & hold, and fix & flip, but mainly the buy & hold route.  I thought I had found an article on BP at one time, but cannot locate it now. I appreciate any advice and help directing me!

     Hi Greg.  PM me.  

  • Investor · New York, NY · Member since 2018 · 1 post · 0 votes
    7y

    @Don Konipol

    Hi Don,

    Can you please forward a digital copy of your book as well. I am new here.

    oracfan at gmail.com

    Thank you!

  • Investor · Pittsburgh · Member since 2021 · 14 posts · 4 votes
    4y

    Raising private capital by @MattFaircloth has a ton of info

  • Member since 2018 · 6 posts · 4 votes
    4y

    @Don Konipol I would love to read your book! I'm new to investing besides renting out my own SFH for a time. I am looking at all sources of lending to build momentum. I have a couple deals I'm working offers on and I want to be ready to strike when one is accepted!

    Moneyforfam @ gmail.com 

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