I have an aquaintence that contracts. He’s got a good reputation, and seems reliable enough. He is limited as to how much he can have borrowed at a time, so we spoke briefly about a private loan.
We are talking about putting up the cash for a house build, that I would get back upon the sale. It would be paid back in full plus 10%.
Do any of you guys have a strategy you could or would share for me typical draw stages for a private loan and things I should be requesting for my personal protection?
The builders will surely make a good profit, but I’m not against that, I just want to be sure I am covered if I choose to pursue a venture with them.
It will all be formalized at an attorneys office, and I’ll be the Lien holder until payment in full is made. I don’t know what to anticipate going wrong, so any guidance would be great.