Private Lending Procedure/Docs.

[Christopher Dunson]

I received a call from a loan officer today looking for alternative financing options for his client. From what it sounds like to me, this person owns a few properties free and clear, and is qualified and closing on another property. The problem is it turns out that the money she wanted to use for closing ($45,000) is in the form of uncertified funds that she cannot use toward the closing of the property. They're looking for a short term loan for only two weeks, and was originally calling me for phone numbers of some hard money lenders, but I told them that if he would like I can fund the woman for a fee if she is willing to put up one of her paid off properties as collateral until I'm paid back. That sounded great to her. They don't even think the loan would be for two weeks. My question is what is the process I need to take to be able to do this properly and quickly? Thank you.

[Mark Gallagher]

@Christopher Dunson

@James Masotti

7 points? or 7% APR? I would never give someone $45,000 for $262 return but I think you're talking 7 points $3,150 and then something 12% APR which I'd say that is definitely fair. I would shorten the balloon up to 1 month that way your intentions are clear that you want your money back immediately. You could structure it so as long as they repay you within 30 days, interest is waived, and only points will be collected.