What paperwork to look for what starting as a money lender

[Vib Baker]

Hi,

I am a small investor and i am very new to BP. I currently own 2 properties in the dallas areas. Fortunately i have some cash that i wud like to lend to someone. I wud like to know what afe the possibilities and typically what paperwork should i look for before deciding to lend my money.

[Ann Bellamy]

Vib, there are several threads on this topic, do a BP search on "how to be a private lender" and you will find several threads, which will then lead you to still more threads.

1. First, and most important, find an attorney in your state who specializes in private/hard money lending. This is not the real estate attorney who has closed a couple of hard money deals. Find other hard money lenders and ask who they use. Do not skimp on this step. There are many federal and state laws regulating what you can and can't do, and banking commissions are looking for scapegoats.
2. Your attorney can advise you on lending regulations and provide you with loan docs. I recommend you require the borrower to close with your attorney, certainly at least for the first few deals.