Private money lending. Do I understand it correctly?

[Chuck Redman]

Is the loan guaranteed simply by a promissory note? Does the note list the property as collateral effectively placing a first lien on the property until repaid?

I am considering using this to purchase property to rehab and sell. This looks like how the lender's money is secured.

Your input is greatly appreciated

[Karen Margrave]

Chuck Redman a note is issued which states the terms of the loan, and that is secured by a deed of trust on the subject property. The Deed of Trust is then recorded, and becomes a lien against the property.

As to the loan guarantee, what is it that you want to do? Are you taking over the loans and guaranteeing payment, basically doing an all inclusive or ?

You can get @Bill Gulley to chime in, he's great at explaining lending details, as is @joel owens