How to Structure a Hard Money Loan

[Christopher Evans]

Hello BP Members,

I was recently approached by an acquaintance for private lending for fix/flip.  I have never privately lent but am intrigued by the opportunity.  If I were to draw up an agreement what should be included to protect myself and my money and, while I know lenders vary in points/rates/terms, what would be a good place to start for assets in the OH area.

Thanks in advance. 

[Account Closed]

Hire an attorney.  I believe Ohio is a mortgage state.  You want to make sure you have a first priority lien on the property.  Additionally, improperly worded documents can cause all sorts of issues if the deal turns sour.