Docs for private lending

[Brian Berg]

Hi Everyone.

A private investor (high net worth individual) would like to be a silent backer for some deals that I am doing.  Does anyone know if forms/contracts for this type of agreement are either on this site (if so, where?) or another site?

Thanks.

[George Despotopoulos]

Hi @Brian Berg 

I would need some more details to opine here. I don't really know the nature or circumstances of the transaction.

What sort of structure were you thinking of or rather what sort of agreement. Also, would you just be the purchaser of a property with the investor giving you the funds?

I have seen individuals form an LLC; the investor contributing capital and the other member sweat-equity and/or capital as well. Although, the investor, if he wants to remain as silent as possible, would need to own less than 25% as most lenders would then require him/her to be a personal guarantor if they own a certain %.

I am an attorney licensed in New York but I'm also a co-founder of an online mortgage lender based out of NYC, so I do not engage in private practice currently. But, I'll can give you some recommendations of corporate/business attorneys to speak with. Let me know if you're interested in that.