What do I need to do when I have a private lender.

[Diego Delacruz]

At the moment I have a house lined up for flipping. I'm going to partner with someone who has been flipping house for over 10 years but has never needed private lenders to flip homes. I have a private lender tHat would lend me the money but I don't know how that process is done. How do I obtain the actual money and what forms or documents do we need to complete?

[Ned Carey]

The most important thing to do if you have a private lender is:

Pay Them back

The most common arrangement is the lender has a mortgage on the property you are buying. The most important things you need to agree on are:

1. Loan amount
2. length of loan
3. interest rate
4. Amortizing or interest only
5. Is there a balloon
6. Is there a draw schedule and how is it handled

The settlement attorney can draw up the docs (well most can) and will handle the details if you give them this information.