Private lending terms

[Kristen P.]

Thinking about asking a family member to be sort of a hard money lender or private lender (not sure what the correct term would be here) for a future investing plan. Does this sound like a solid plan , or do you have any advice for these kind of deals.

Us buying property , asking the lender for cash for the rehab , holding the property , refinancing , and giving them their money back plus a extra percentage.

We already have a successful 2 -family rehab on our hands that they have seen FYI.

[Walter Key]

@Derek Dombeck is spot on. Regardless of whether it's a professional lender, a rich "Uncle Joe", a good friend from college, whatever...ALWAYS put the paperwork in place and treat every single deal as if it were between you and someone you don't know.