Purchasing property with a private lender, how does closing work?

[Dennis Kimzey]

When you utilize private lending to purchase a property, do they as the private lender bring the money to closing in the form of a loan or do they cut you a check?  Not even sure I used the right terminology here. Thanks for any help.

[Matt Devincenzo]

Based on the terms you're using, they would send funds to escrow/title and you would execute a promissory note and mortgage/deed of trust. This would create a 'loan' of their cash to you....the promissory note is you promising to pay them back, and the mort/DOT is recorded so that 'the world' knows they have a loan on the property that needs to be repaid. Really there's nothing different between a private lender and a bank lender as far as what happens. The difference is just in what they want/need to document in order to lend you money.