Private Money Lender Basic Questions

[Ed Russino]

Clearly there is a lot of due diligence required when acting in the capacity of a private money lender, but are there any particular measures that one takes to help to ensure your financial protection such as the ability to place a lien on the property for which you are providing the loan?

Is there a standard template contract that you use for each loan, or do you have a customized contract with specific terms drawn up for each deal?

Along the contract lines; do you use an attorney for each individual transaction?

Finally; do you typically provide all of the funding for a particular deal, or is it possible to enter into deals where your loan is only a portion of the funds being sought by the borrower, who will then use multiple private lenders for a single property?

 Thanks in advance for the insight.