All Forum Posts by: Chad Herring

@Ronald Isgate thank you for the advice! One follow-up question: do you have any quick tips for finding a real estate attorney, such as the usury rate mentioned by @Beth Johnson? 

As this opportunity just came up, it sounds like I need to do much more legwork and research of the area prior to jumping in. Any good resources to help find private loan ranges for that particular area? 

@Jacob Sherman I'm going to show my inexperience here, but is asking what the money being loaned on the same as what it's being used for? 

@Mike Grudzien and @Beth Johnson appreciate the advice! I'll definitely look into that book and will find an attorney well versed in private money lending. I love the tip regarding the usury rate. 

I've decided to become a private money lender for a fix and flip investor. I've done my best to research the process but wanted to get additional guidance. I'd like to loan around $25k to start, but I'm undecided on loan terms, so any guidance in that area would be great. It seems like interest rates are most common, so that's what I'm leaning towards, but is the ball in my court regarding the terms or in the investor's? Additional questions are regarding the legal process: Do I need an attorney? Do I need to set up an LLC? 

*Reposted from another forum. 

@Nicholas L. understood. Thank you. 

@Nicholas L. I appreciate the insight. So, you'd suggest what to start out? Simply not getting into private lending or less than $25k? 

I've decided to become a private money lender for a fix and flip investor. I've done my best to research the process but wanted to get additional guidance. I'd like to loan around $25k to start, but I'm undecided on loan terms, so any guidance in that area would be great. It seems like interest rates are most common, so that's what I'm leaning towards, but is the ball in my court regarding the terms or in the investor's? Additional questions are regarding the legal process: Do I need an attorney? Do I need to set up an LLC?