Using your money for private lending

[Terry Royce]

I have been in contact with a large local real estate investor, and he builds a list of people willing to lend money privately.

He contacted me regarding a short term loan at 10% for 30k.

I've never lent money before, but what do I need to look for and do to protect myself in the event I do lend.

Thanks
-Terry

[Rob Beeman]

All of what Jon said is great info. The only thing that I would add is to make sure that the borrower (buyer) gains insurance on the property in case of fire/vandalism showing you as the lender/lein holder. Might also want to cosider a Assignment of Rents agreement signed by the borrower at settlement. That would cover your interest in case the borrower collects rental payments from the property but does not pay the mortgage.