OPM Other People's Money

[Erick Jordan]

I have been doing deals with my own money but I just found my first "silent investor" and I need to know how to set up the money so that everything is legal and done right..... anyone got input here on JV deals or OPM?

[Ronald Rohde]

Originally posted by @Erick Jordan:

I understand that and would do so, but this is not a deal for one property and would not be a "mortgage".  It is a deal for a set amount of money for a year at a set interest rate....  Insurance will be set up to cover the lender in the deal but the "loan" will basically be a lean hold on each property for the value used in that particular deal....  Dose that make sense?  I am open to input, lol

 Is it a loan or equity? Is it secured or unsecured by collateral such as real estate? Will you want to record the agreement? These types of answers will determine what type of "investment" it is, how it is regulated and what documents to draft to protect both parties.