First Private Money Lending Deal

[Yao Thompson]

Investment Info:

Small multi-family (2-4 units) private money loan investment.

Purchase price: $100,000
Cash invested: $20,000

I executed my first private money lending deal, the loan is still open but I've already gained some insight and lessons for the next loan to make the process and transaction smoother.

What made you interested in investing in this type of deal?

I wanted to get the exposure but also put my money to work.

How did you find this deal and how did you negotiate it?

My network brought the deal to me and after talking with the borrower and underwriting the deal/collateral I decided to move forward with this deal.

How did you finance this deal?

I Financed the deal I was the private lender in this situation.

How did you add value to the deal?

I loaned funds for the borrowing entity to complete a cosmetic rehab

What was the outcome?

This is still ongoing

Lessons learned? Challenges?

Charging points is to a lenders benefit when considering the fees that are associated with loaning money.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a real estate attorney in my area and I would highly recommend her. Her name is Carly Niño Esq. and she is with Taylor, Taylor, & Taylor in Richmond, VA.