Understand what you are investing in....is it a secured loan, unsecured loan, membership interest in an entity that deploys capital like a feeder fund or direct membership interest in an entity that is the deed holder? 

Lucy: your story shows that setting up a loan is more than just interest rate and other terms.

We buy defaulted loans and deal with this all the time.

25 inspection, 25 closing, 1 loan.

I'm currently exploring the world of real estate investing and have become particularly interested in the role of private money lending within this space.What strategies have you found most effective in securing private loans for real estate deals?

In San Diego at the current rates for a purchase loan (which has better rates than an ADU additions) at high LTV, I show 1% does not cash flow on a sustained basis.  

The only purpose of the account would be to collect payments and pay bills like taxes and insurance on assets held by the LLC.

For financing, would we then want to get a DSCR loan under the LLC or should we start with conventional loans under our name until we hit a certain number and then move them over?

To maximize your investment, use financing options like FHA or conventional loans, analyze deals based on cash flow and cap rates, and network with local investors through REI meetups and BiggerPockets.Good luck!

Maintain - includes taxes and insurance?