Was offered private money lending for my commerical deal

[Adam Liu]

Hi guys this is my first post on here. I wish I had more to contribute before I start asking questions but I guess I'll just have to deal with the newbie hazing (please be kind!).

I currently have a deal for a commercial deal. I will be owner occupying with one of my businesses and there are several units within the deal which I will rent out. 

Unfortunately I hit a road block with conventional bank financing which I have been pursuing for the better part of the last 3 months. Pursuing SBA loans is a real challenge!

Since time is not on my side I have been looking around for some other options. I so happen to be speaking to a friend of mine about my situation and he offered an avenue of private lending. He knows my business and has some intimate details on my financials and cash flow from my business. He is comfortable and confident in financing my deal. The terms that were initially offered is 9% / 180 months on 700k.

My question is rather broad. This is the first property I am purchasing both residential or commercial. I have been researching and learning about conventional lending for the better part of this year however private money lending I am completely in the dark about. I will be speaking to my attorney about it however any first hand experience would be great.

Is there a common practice in which terms are drawn up? Who holds title on the property? What else should I expect?

I'd love some advice on what I could bring to the table to discuss. 

Thanks very much everyone!