PRIVATE LENDER NEGOTIATION

[Roberto Marin]

Hi BP Nation

Right now I'm structuring my presentation to negotiate with private lenders some of them friends and overseas costumers.

How the process work?

How do I guarantee secure funds during the transaction Do we deposit the funds in a escrow account protected to use exclusive funds for the property?

Who secure the funds during the transaction a lawyer, escrow account?

I'm looking the documentation and process involve with the private lender and this process has to be secure step by step with the proper sequence for the lender to feel secure in all the transaction.

Looking on BP files I don't find any agreement between investor and private lenders.

My business plan is start at 50-50% profit I'm finding deals 55-75% below market value just Turn keys and light rehabs prepare the property for sale and sale it! my area South Florida.

I would greatly appreciate any input from members.

Thank you kindly.

Roberto

[Bill Gulley]

Well, you're saying "lender" but you're implying a partner saying 50/50. If you plan on splitting profits that is best suited as a partnership, not a lender with a mortgage loan. A lender can give good funds to a title company and they receive a not and deed of trust. In a partnership, the partner puts money in a company account and they may control funds and account for funds through the company agreements and accounting methods. The company route may sound difficult but it is actually the most secure if properly drafted.

You need to better define what you are doing and what your arrangement is and how funds are to be used before you can devise the method. :)