Private money question

[Lara Taylor]

Hi BP members,

I have been talking with a private investor about investing in my next project. He is wanting me to pay the attorney fees for the contact and documents.  I do not have a problem with that at all and I am willing to pay it. But I have been alittle put off by him. I would like my attorney to handle the fee transfers. The lender would rather I just wire the money to him for him to pay his attorney. With my attorney he would put it in his escrow until the fees are needed to be paid. I contacted the lender and stated that I would be putting the money for the fees I  escrow and he stated that he did not deal with escrow accounts because the last one he dealt with was a fake escrow account? I am not sure why he stated this with my attorney being willing to hold the funds in his escrow? Fishy to yall? 

[Jonathan Taylor Smith]

@Lara Taylor - What do you mean by "fee transfers"?

For myself in NC, I had a local attorney who has handled prior closings for me with funds from a traditional lender, create documents (Note & Deed of Trust), that I now use with my private lenders. Most of my closings are handled by this particular attorney, but whenever I'm required to use a different attorney or title company, I have them use my same documents that I already have and paid for.

I always pay all fees and costs on behalf of both my sellers and private lenders, but there is never a situation where I am sending money to a private lender or they are giving money to me. In all cases, the private lender wires funds directly to the closing attorney. And if for any reason a given private lender did not want to follow my established process, I would thank them for their time and ask that they contact me if anything changes and they wish to proceed as I require.