How do you structure you pml terms?

[Pedro Amador]

Happy new year hope everyone's having a great start! Ill get to the point i am meeting w a potential private lender this up coming week, i have been doing my homework and educating myself with what i can to approach the situation. This will be my very first deal ever. I plan on doing a flip. Im not sure how much this man is willing fund i do know that he has two very successful restaurants . I dont plan on talking numbers or asking for anything our first meet i want to get to know him ask him questions and find out what his goal, and expectations are for his future and his money. That being said here are my questions

What do you ask you PML when you first meet them and what crucial questions should i ask that you wished you had asked at first?

What term should i include in the agreement?

How should i structure the lend. Lets say worst case scenario he does decide to invest w me and he lends me 30k should i do maybe 10% interest on the 30k for 4-6 months. ?

If my numbers are off can someone point me to the right direction on where i can figure out how to set my numbers right all i find is info on how to build a relationship w PML but no actualy terms and numbers.?

Would it be a good idea to use Private money for a hard money down payment and the rest to pay my rehab and that i have to pay up front before getting reimbursed?

Thank you for your time !

[Joe Villeneuve]

PRivate money is a great way to do this.  Now before someone say "the person that speaks first loses", I will tell you that the person that speaks first wins.  However came up with the "loses" statement was totally unprepared, and was basing everything on what was dictated to them.  I don't work it that way.  This means not all private lenders will work with me, but I don't need them all to.

Now, before anyone can answer this question, we need to know what your plans are for this money you will be getting.  Is it for one property, and if so, what are your plans for that property?  Is it going to be your seed money, and if so, how much are you going to need, and do you have a plan on how to use this money over and over again...but only getting one loan...this initial one?

The terms for the two uses above will/should be dramatically different.