All Forum Posts by: Account Closed

@Daniel Raposo

This is a term of 6 months at 10% so 20% APR. Or were you saying that it would be 40% APR? I hear what you are saying on the larger lender. I am going to clear this up, but it may be the person that I am directly lending to who has the rest of the equity. He might be putting in the lion's share of this project and is looking for a little extra to get it through. I will clarify and get back to you. Thank you for the advice!!

@Rick H.

I by no means want to lose this money, but I would not sink without it. I understand there is risk in lending and I am willing to accept that. If need be, I could deal with the house. I also have a very low LTV on the house which is reassuring. One thing that I need to clarify, is if he will be loaning the rest to his business (if that makes sense) or if he has another private lender lined up.

@Jay Hinrichs

Would I as the lender HAVE to have an MLO, or could he have one to draw up the document. Sorry if that's a silly question. 

I am definitely going to pursue legal advice as well. Just wanted to get my feet wet here. 

Thanks again for the advice! 

@Account Closed

Thanks for the advise! I will get more of the numbers from him today. 

@Percy N. 

I am only loaning 20% of the initial down-payement. There are a few parties lending.

This is a 10% balloon loan, not APR. APR would be 20%

What is the advantage to lending to an entity over an individual? 

I'll definitely add some language for an extension. Right now he is saying he won't need one... but what if? 

@Charlie Fitzgerald

Thank you for the advice. Duly noted! 

Hello Kelly! I am (relatively) near you in Pike County PA. I am very new as well and would be interested in meeting up if you have the time. Let me know if you would like to grab coffee sometime. 

I am considering lending money for the first time. I would not consider this if I did not feel comfortable with the individual. He is a flipper in Prince George's County MD. We have many mutual friends and I have known him for several years. He has successfully flipped approx 10 houses and has more than 10 years of construction experience. He has two employees. I have called several mutual friends and his references. The last thing that I want to do before moving forward is make sure that I am legally covered. Any advise would be greatly appreciated. I will not replace legal counsel with this advice, nor do I hold anyone who comments to their opinions. Thanks in advance. 

*I've already noticed the spelling error in the second to last paragraph ;) 

Hey Clifford. I am also interested in this topic. I am thinking about getting into Wholesaling in the Stroudsburg PA area, and any advice going into it would be great. Thanks for bringing up the topic!