Private Money - Family / Friends

[Jamie Adames]

I'm looking into borrowing money from friends and family members via a promissory note secured by the property. 

I'm hoping to get some feedback and advice for this process and if there are things that I may be missing. 

[Saravanan Saravanan]

@Jamie Adames It is a good idea for the peace and clarity; private lender; wires the fund for real estate transaction to the title company handling the transaction.

It is recommendated that private lender gets the Lender title policy issued by the title company.

Also, you may have to keep insurance for the property and have the lender as loss payee.

Take help of attorney and/or title company as appropriate further.