All Forum Posts by: Stacy Patel

Having multiple layers of protection is a smart approach to mitigate the risk of not being paid back in a 2nd position loan. Using a 2nd lien on the target property or cross-collateralizing with another property can provide security in case of default. A JV agreement and a promissory note outline the terms and responsibilities clearly, ensuring that both parties understand their obligations. Personal guarantees add an extra level of commitment from the borrower. While it may seem like overkill to some, these measures can provide peace of mind and safeguard your investment.

Maintaining a strong and positive relationship with borrowers involves clear and consistent communication, setting realistic expectations from the start, and being transparent about all terms and conditions. It's important to address any concerns promptly and to be flexible and understanding when borrowers face challenges. Regularly checking in and providing updates can help build trust and ensure mutual satisfaction. Overall, treating borrowers with respect and empathy goes a long way in fostering a positive and lasting relationship.

Carefully review your insurance policy to understand the terms and conditions. Look for clauses related to payment schedules, reconstruction, and dispute resolution.

Private money lending involves using your own funds to finance real estate investors' projects, offering interest rates of 8-15% with terms of 6-24 months. To minimize risk, lenders should assess the property's value, maintain a low loan-to-value ratio, conduct thorough due diligence, and use legally binding contracts. Getting started includes educating oneself, starting with small loans, partnering with experienced lenders, and networking with real estate investors. Resources like books, forums, and investment meetings can provide further guidance.

Definitely work on your FICO

Hi David, I have a relationship with a commercial lender. Although I am not sure if they can help with this but I can connect you to him. 

You might want to consider Private Money! I have a network of over a thousand of lenders that can help fund your deal. Let's connect!

Would love to connect and see how I can assist you in locating some funding!

To start lending your own money to real estate investors, you need to first educate yourself on the fundamentals of real estate financing and investment. Begin by networking with local real estate investors, attending industry meetings, and possibly joining real estate investment clubs. It's essential to determine your investment criteria, including the loan amount, loan-to-value ratio, and types of properties you're willing to finance. Common terms for private money loans include interest rates ranging from 8-15%, short-term durations (usually 6-24 months), and LTV ratios around 65-75%. While private lending can be lucrative, it carries risks such as borrower default and property devaluation, so thorough due diligence and legal protections are crucial. Consulting with legal and financial advisors will help ensure your lending practices are compliant and secure.

@Clark Spalding

I am a PML and have a network of over a thousand of lenders ready to help fund your deal!