Private money lender

[Ashton Davis]

We are in the begging stages of planning my REI future and for my first deal. I have a committed private investor, but as neither of us has done anything like this before there are so many questions we want answered so we know exactly what we're getting into and who to reach out to.

I’ve found several forms of notes online that seem straight forward that we can use as a template. However there are options to notarize, or just have a witness. This PI is a close family member so repayments not a concern, but from a legal standpoint I feel we should get it notarized.

1. If they wire the $80k that will be on the note, are by there fees (other than document fees with attorney who notarized ) we should be aware of?

2. Is the lender charged any taxes or fees for wiring that amount to another bank acct?

3. Are their fees, or tax implications for bower and lender when the loan is paid back in full plus interest?

4. Is it better to make payments over the course of the loan, or pay back in full? Lender is comfortable with either, but want to minimize fees, charges or taxes.

5. Are there restrictions on how man times the lender can lend you money? As this is a note (from a family member) not a gift it’s not taxed as such for the lender correct?

Thanks I’m advance for any feedback. Everything I’m reading online is like “get a private lender” and they give you money. I couldn’t really find details on the actual financial intricacies of that process actually happening.

[Jay Hinrichs]

please take no offense however based on the questions your asking you probably should spend 200.00 with a local attorney and not get your advice off of the internet..  I can answer all those questions but not going to .. others might.

for most folks that have a basic understanding of notes and or have bought real estate they don't need an attorney but in your case I think its money well spent to protect you and your investors.