Private investor forms

[Daniel Townsend]

I am new to REI and am scouting my first deal. I have a family member who could be a private investor. I've done some searching online and it looks like somehow I need to show the government this info so they can track it.

Has anyone filled out forms or know the steps to log it with the government? I have a business set up for REI but just looking for info. Thanks!

[Michael Ealy]

Originally posted by @Daniel Townsend:

I am new to REI and am scouting my first deal. I have a family member who could be a private investor. I've done some searching online and it looks like somehow I need to show the government this info so they can track it.

Has anyone filled out forms or know the steps to log it with the government? I have a business set up for REI but just looking for info. Thanks!

Daniel,

It depends on how you structure it.

If it's a debt structure - meaning your family member becomes your "bank" or mortgage lender, then there's no form you have to fill out for the government. 

He/she lends you $$$ and the paperwork comprises of a Promissory Note and a Mortgage. The investor has a first mortgage lien on the property and that mortgage can be recorded at the county so it becomes public information (so you can't put any other loan on the property).

I am based in Cincinnati also like you. PM me if you have further questions and who knows, I might even call you.