Private Money Lending

[Rebecca Rae]

I have been mentored by a real estate mentor for almost a year. She has been investing for 20 years across the country.  I told her that I would like to get into private money lending.  So she asked if I would like to loan on her recent deal that is valued at approx 110K and has a clear title.  I would be loaning 65K.  She is offering to pay 8.75% for 8-12 months. I will be the first lien holder and beneficiary on the home insurance.  Does this seem like a good deal?  The property is in PA and I am in CA.  I called the Mortgage company to verify the property and clear title.  I need to wire the funds soon so wanted some last minute advice.  Thanks. 

[Caroline Gerardo]

You need title insurance. Calling a mortgage company gives you nothing. Are you willing to foreclose and own this?  Cost to foreclose about $10000- 50000? depends on condition of property after foreclosure.