private lending liabilities

[Alex Chen]

Hi BP,

New to the site, every excited about this forum. I have a question about the liabilities associated with private lending.

If i write a personal check to a flipper as an equity partner, junior lien holder or senior lien holder. does that open doors for potential lawsuits related to that flipper and the property? 

If so, how do I mitigate that risk? 

Also, if another investor brought me a deal asking me to co-investing, the investor will be using a licensed mortgage broker to fund the deal. Does that expose me to similar risks? 

Alex.