How do you set up private financing using OPM??

[Miles Stanley]

So I hear about a lot of people using OPM, but I never really see details on just HOW the arrangement is created?  Does a document or agreement get signed and recorded?  Do they just hand over the money with a wink and a hand shake and trust you?

On method i learned about here in Tejas is to have the private investor hold the note with a deed of trust against the property and the title company sets it all up. 

Are there other ways?  For example, is there a way to write up a contract as a cash deal using OPM while still having the arrangement set up a a loan on the side?

Thanks,