Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Investor Mindset
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

4
Posts
0
Votes
Jennifer Hafner
0
Votes |
4
Posts

Private lending fund investing

Jennifer Hafner
Posted

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

User Stats

183
Posts
75
Votes
Dustin Tucker
Lender
  • Lender
  • Savoy, TX
75
Votes |
183
Posts
Dustin Tucker
Lender
  • Lender
  • Savoy, TX
Replied

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?

User Stats

877
Posts
386
Votes
Mike Klarman
  • Specialist
  • New Jersey
386
Votes |
877
Posts
Mike Klarman
  • Specialist
  • New Jersey
Replied

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.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

4
Posts
0
Votes
Jennifer Hafner
0
Votes |
4
Posts
Jennifer Hafner
Replied

Thank you both so much!!!

User Stats

16,783
Posts
14,329
Votes
Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
14,329
Votes |
16,783
Posts
Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
Replied
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.

User Stats

4
Posts
0
Votes
Jennifer Hafner
0
Votes |
4
Posts
Jennifer Hafner
Replied

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

User Stats

16,783
Posts
14,329
Votes
Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
14,329
Votes |
16,783
Posts
Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
Replied
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

User Stats

4
Posts
0
Votes
Jennifer Hafner
0
Votes |
4
Posts
Jennifer Hafner
Replied

thank you