Private lending fund investing

[Jennifer Hafner]

What questions should I ask a fund manager before I invest in a private lending fund?

[Dustin Tucker]

1. What types of properties do they lend on?

2. What is their leverage, what is the combined Loan to Value that you will be lending on?

3. How much skin in the game is the borrower providing? In some cases it could be 0, I would try to stay with a fund that required a minimum of 10% from the borrower regardless of the actual LTV.

4. What types of loans are they making?  Fix and Flip, Bridge Loans, New Construction, etc.

5. What is their current default rate if any?

6. What States are they lending in?

7. Historical returns for clients? Do they have more than 1 fund? What were the actual returns?

[Mike Klarman]

I'd wanna talk to others in. the fund and if they are a legit fund there are legal filings they need to have done.  They should have a spreadsheet of the assets bought and sold, also a P & L statement of some kind.  If they didn't offer that off the top that would scare me a little I have to be honest.

[Jennifer Hafner]

Thank you both so much!!!

[Chris Seveney]

Quote from @Jennifer Hafner:

What questions should I ask a fund manager before I invest in a private lending fund?

 Literally just recorded a webinar on this yesterday.

[Jennifer Hafner]

Chris, would you mind sharing with me where I could watch it, please?

[Chris Seveney]

Quote from @Jennifer Hafner:

Chris, would you mind sharing with me where I could watch it, please?

 Sorry I thought I posted the link. Here it is

[Jennifer Hafner]

thank you