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Updated over 2 years ago, 04/26/2022

User Stats

75
Posts
19
Votes
Wendy Busa
  • Madison, WI
19
Votes |
75
Posts

1st time lending money as a private lender use of title company?

Wendy Busa
  • Madison, WI
Posted

Very newbie question. I have a borrower who is a member of our local REIA, that needs $50,000. I want to make sure I understand the process of being a private lender. I have my lawyer draw up a mortgage and promissory note. I get my name on the home insurance.

I thought I should be mail wiring the money to the title company, but this borrower will be writing a check at close to the title company and then wants me to wire him a check direct. That sounds risky. 

I would greatly appreciate your thoughts on this.

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