Tax Forms for private money loan
Hello BP.
I have a individual that is interested in funding one of my projects as a private money deal, but they have concerns about the paperwork and tax documents being a serious hassle. I have always done conventional mortgages, so this area is new to me and I would appreciate more experienced investors chiming in with their opinions.
As a bit of background: I have a couple of buy-hold rentals currently held by my LLC. The private money loan (PML) would go to the LLC of which I am the sole owner. My goal is to minimize the amount of paperwork my lender will need to fill out and process.
1. How difficult is the process of filing tax documentation for a private money loan? Would you recommend hiring a CPA to draw up the documents or is it simple enough that an investor should be able handle it themself?
2. I have a simple promissory note already drawn up with terms that both the lender and I are happy about; my lawyer has already reviewed and ok'd it. Are there any other documents you would recommend having in place?
Thank you for your input, please let me know if there are any questions I can answer.
Keywords: CPA Accountant Tax Taxes 1099