Private Money Process not HML

[Robert Gunby]

How does the process of acquiring private money work. You bring a deal to the potential lender, they like it and decide to lend you the money for a specific amount based on certain conditions. What are the next steps? You go to lawyer, he draws up the contract and then the private lender wires you the money? Or does it go into an escrow account with a third party company? I know it is more complex than that but I'm just trying to understand the scope of that area.

[Jeff Rabinowitz]

Every lender will have their own process and criteria they use when deciding to fund. Most experienced private lenders will draw up their own contracts. Inexperienced private lenders may prefer that the borrower draw up the contracts. Lawyers may be needed or they may not be depending on the experience and comfort level of both parties and local practices. It is rare that an experienced private lender will wire directly to a borrower. Inexperienced lenders may, but that is not wise. I discuss several aspects of lending from an experienced private lender's point of view (mine) on my blog that can be found on BP. I am not interested in soliciting your business but am happy to help if I can. The only deals I make are with people in my locale with whom I have a relationship with.