Advice / Mentor on Becoming a Private Lender

[Johnny Hastings]

I have capital, and want to be a private lender. I really would like to talk to someone with experience doing this.

I have already found a borrower, but I don't know where to go from having capital, and having a borrower.

I've watched a bunch of youtube videos on the subject, and I've found some Promissory Note, Mortgage, and Deed of Trust forms that will work for my situation. Much of the info I can find is years old, or seems kind of spammy, so I'm unsure what to trust.

I understand property valuation, and the borrower is exploring a few properties to send me details on. He's a solid person, with a good track record on turning around property, and is putting together an appropriate package on each property he is going to seriously consider. 

If someone out there has some solid info on this subject, my ears are open. If I could chat about some of the nuances with someone, that would be fantastic. 

[Josh Caldwell]

You need two things. First you need a good LOCAL real estate attorney to put all of your paperwork together. Someone who can make sure you are secured, and that you can take your property back as quickly as your state law allows.  

Secondly, you need to construct a due diligence check list, and make sure that your borrower checks all of the boxes. Don't ever take the borrowers numbers as anything until you can verify them all. Pay special attention to ARV, borrowers tend to fantasize about the resale price. All of your numbers need to be very conservative to protect your investment.

It sounds like you have already done this, but look into your borrower. Some of the best liars are convincing  because they have a lot of experience as liars.