Should I Lend $50K To My Friend?
This question is about microlending. As a first time lender, I wanted to ask other experienced private lenders: how do you structure your deals?
With debt financing: how do you determine your interest rate? Is equity financing an option, and if so how do you determine the ownership % you expect to receive in exchange for your money? How can I protect my interests (e.g. things to look out for, avoid, include in contracts, etc)?
My friend needs $50K to rehab his property. I am thinking of offering to lend him the capital. I am interested in investing in real estate, and figure this could be a way to get started.