How Tiered Returns Can Help Structure Private Lending DealsHey BP community,I wanted to share some insights on structuring private lending deals, particularly when working with private investors to fund real estate projects.

You can structure it as an LLC or joint venture, which offers clearer tax and liability benefits.Your son doesn’t need to be on the loan or title if he's a silent partner, and you can manage the mortgage, credit, and insurance.

Hi Chani,You are right to question fee structure.  10% is on high side. 

I see a lot of fly-by-night structures in Barnum (and Valverde and Westwood).

It's recommended to discuss with an attorney knowledgeable in your state laws to determine the benefit and best structure for your situation. 

Secondarily, if I had a buyer for the land before I close, could I structure the purchase to include them without doing a wholesale deal?

How are you currently structuring your capital raises—syndications, JVs, or a fund? 

Quote from @Anne Christensen: Unless you have a ton of equity, I wouldn't bother with a legal structure that adds complexity and cost.The odds of you being sued are about the same as being struck by lightning twice.

Every lender has different criteria when it comes to seasoning periods, LTV limits, and DSCR requirements, so knowing those details upfront can help you structure your deals more effectively.Looking forward to seeing how your BRRRR journey unfolds.

Quote from @Anshuman Thakur: Can someone please shed some light on how- convert 401k to SD IRA- how to use SDIRA to buy properties- how much down payment is typically required if we are using SDiRA to only fund downpayment on a multifamily CRE, and which banks typically work with SDIRAs- how does LLC structure- property management and cash flow work in this situation?