All Forum Posts by: Matthew Haskins

I am investing in and around Minneapolis Minnesota. I have been working on finding funding for Rehab projects. I have found family members and friends that would be interested in loaning on deals. I want to make sure that these important people in my life are protected properly in these deals.

Questions that come to mind:

• Do most lenders create a business entity for their loans?
• Do usury laws apply when the lender is secured in the first position of a mortgage deed? Minnesota law seems to not restrict interest rates on mortgages MN Law, Law Summarized in Paragraph 4 by MN Lawyer here
• How else can a family member safely be brought into a real estate deal as a lender? Is a partnership appropriate in this case?
• Other than securing the lender with A Promissory Note, Mortgage Deed, First Payee on Insurance Claims, and Personal Guarantees what else should the lender be secured by?
• Anybody know of good attorneys to send lenders to in Minnesota so that they can do their own due diligence?  

Great Tips everyone. Thank you all for the support and responses!

Hello all,

I have been working with another investor on a potential Joint Venture deal, that ended up being more slim than we would prefer. The other investor has found buyers willing to buy the deal as a wholesale from us. I would need to provide the transactional funds for a double close. I have never done transactional funding before. 

I would be loaning $125,000 for a single day. The other investor is also contributing funds in the about of $90,000 for the initial A to B purchase.

What points to be people charge? 

What fees should also be added?

What are the inherent risks of lending like this?

What process or system should I follow while making the loan? (i.e. promissory notes, final buyer funds in escrow, etc.?

@Sarah Ziehr I would be interested in hearing more about that technology then!

That algorithm sounds pretty powerful in this industry. You might even be able to market that to make some of your money back. I know I would be interested if it could be easily adapted to my Minnesota Market.

I agree with Matt though, that I am surprised you are hand writing the letters. Have you ever tried those fullfilment centers that will write your letters with a robot holding a pen. It looks exactly as if you wrote it, but saves you time to take the calls and chase the leads. I have a subscription to Realeflow and they have a penned letter service. There is a one time setup fee to get a customized content letter, but I think it was around $50. Check them out here if you're interested --> http://realeflow.com/refer-a-friend/?id=68064 

Hello, BiggerPockets Followers. My name is Matt Haskins. I am the owner/manager of Ideal Equity Group LLC out of Minneapolis/St. Paul MN. We are a local property re-developer and are dedicated to improving the communities we work in. We are always looking to educate ourselves and network further in this industry. We are excited to being joining this group to hear and discuss the communities' successes and opportunities for improvement.