Bringing on PRIVATE lenders Tax and Legal questions.

[Adam Craig]

I know these are questions for my CPA and attorney who I am going to speak with. But I like to get BP thoughts before I have those meetings.

I am starting to get some traction sourcing private money for my deals. I am fading away from my long time hard money lender and now have 6 private lenders with much lower rates.

With a growing pool of private investors I want to get my ducks in a row and I want to know how to make my investors feel warm and cozy about giving me their money.

1. Should each investor be protected with a note and lien on property? When bringing on several smaller investors on one deal I don't know if I should offer them all a lien position.

2. Do you have attorneys draft documents? We have been using the same mortgage/note documents and "filling in the blanks" and mostly avoided attorneys on past deals.

3. Do you need to send them a 1099? The HML I used for years is a pretty big lender and he never requested one.

Thank you!