Raising Private Money

[Dorian Jones]

Hello BP, I had someone interested lending me money, but I'm not sure how to go about it.

If someone wants to give me money do the bank or government need to see where it is coming from, is there any track record that is needed when raising money this way. Is there a limit on how much you can receive at once from one person before you report it? Or what is the right way to go about it? I appreciate any responses on the topic. Thank you all.

[Tom S.]

@Dorian Jones  No limits from a bank that I've ever encountered, unless your account is new and they put some restrictions on it.

I've had someone wire me $100k before, and used the funds to fix up a place (had an attorney draw up the loan docs, and the person was a friend interested in investing with me).  

The "reporting" I had to do was on my taxes, as the interest paid on the loan is tax deductible (Sch E for me).  Once fixed up, I refinanced with a traditional bank and paid off the person.

Hope that helps.

- Tom