I think that's a fair representation Don.Private money can be peer to peer, but not necessarily peer based.If Granny loans you the money, that's usually private. between two parties but could go through a facilitatorPrivate money can be from capital in a JV project, as I see it, private sources are simply from those not in the business of lending, those in the business are (or should be) registered as a lender to some extent, if nothing more than a business license.The use of the term "private money or lender" is pretty loosely used.

Is the conduct of the parties prudent and rational under the circumstances?

None of the parties have reported any difficulty (although Google Drive is pretty darn simple too).

;) Amit, your insurance should not be set with respect to your net worth, that's irrelevant, unless your net worth exceeds the risks assessed, it needs to be established as to the risks and issues mentioned above.As mentioned an insurance company can pay and walk away, if your loss is greater than that you're dipping into you money.Consider too, death cases are based on the loss of income of the injured party, professionals will have a greater value assessed, which means more insurance coverage would be justified.If your net worth is in 8 figures, you're probably fine, otherwise you may want to review your coverage, liability coverage is cheap. :)

The better the deal the lower the percentage can go and there still be a nice profit for all parties involved....

If a portion of the monthly payment from the tenant/buyer is going towards the purchase (and not simply the payment of the option contract), then this amount will have to be escrowed and will have tax implications for both parties: the buyer will not be able to expense it and the seller may have to treat it as an instalment sale.

If you have a third party lender, then I have no idea what you mean by 'paying yourself'.

The subject to part I am talking about is the purchase price you would agree to give the seller.

I would have a plan of action before contacting the agent meaning advising the agent you are interested in the property, how the agent will benefit from you wholesaling the property, and finally how all parties can benefit from the transaction because the seller will have to be ok with this too.

The trust is listed as an interested party on both the auto and homeowners insurance policy.