Private lending deals

[Ryan Van Fleet]

Hello everyone,

I have a question about private lending deals.  I'm curious how private money structures deals. It seems like you can make a deal a little bit more creative then a conventional, but what does one typically look like.

• Do they charge a higher interest rate?
• Do they set payment terms like a conventional?
• How do they protect them self? Do they take out a lien on the property?
• Are there example contracts?
• Do they typical take a stake in the property for the long term?
• Are there any books, blogs, or materials, or private lending?

I ask, because I got a buddy who is considering to use some of his home equality to finance some deals in the future. I told him there are private money lenders, but I don't know too much about it yet. I want to be able to give him a clearer picture of how it works, so he doesn't get screwed. 

Thanks,

Ryan

[Jay Hinrichs]

private money lenders are usually those personally know to you... friends family etc.

HML are in the business of loaning money to entrepreneurs as most folks can't get bank funding for short term rehab deals...

so you need private or hml to bridge to the point you can refi with a conventional lender if your buy and hold