Private investor wants lien

[Jacob Budzynski]

My partner and I have a duplex under contract. We have a private lender willing to lend to us, although he does want a 1st position lien on the property. Since this is not a hard money loan we will be the ones setting up lien and terms.... How does one go about setting up a lien, and does the investor give us the money directly or does he cut a check to the bank for the Property?

[Matthew Paul]

The private lender would be an idiot if he lets the borrower set up the terms and the lien.