Looking at carrying a note- Thoughts on getting the credit score of the potential borrower? I've heard some hard money/private lenders say it doesn't matter what the borrower's score is as it's the property that's providing collateral for the note, however, banks require a credit check for borrowers because they're not in the business of owning homes and don't want to be, and want to make sure borrowers will pay/not default.
Is this owner occupied? If it's an LLC I am more interested in their balance sheet (assets vs liabilities), that way if they default what can I go after?
You can get a credit report too.
Also consider making them personally guaranty the loan.
@Hen Ley Always get a credit report. I've applied for HML in the past and they did pull credit (said the score wasn't the main concern). Their main concern was tax liens, student loans in default, judgments, where the gov't or a creditor could step in and try to seize property / funds.
@Hen Ley I would definitely pull their credit along with evaluating their entire financial profile. Make them provide you with a personal financial statement. Anyone who has applied for any kind of private money or bank loans should have a PFS at the ready to give to you.
Thanks so much for the super helpful feedback!