Advantages of Private Lenders

I've just read three of your post you put on in a roll. All of which pertain to private funding. And sense you are one of the DG coaches, it leads me to think that you are priming the pump, for a break out announcement from DEAN regarding private money!

Now I'm not saying its a bad thing, I just think its timing to get everyone thinking PML.

Jim Kendrick

Jim,
I am one of Dean’s coaches, but I am not sharing this information with you in preparation of an announcement from Dean. This has been a topic that many students have been asking about for the last little while.
I like the Private Money because usually this is someone that we know and chances are better that you can get better deals. Not always, but most of the time. Thanks for your comments.

great info and advice
regards
tom

It is time for us(husband and I) to begin the uses of hard money lenders. We have used all the cash that we are willing to use on our last two deals. Two ? for you. How does the contract look or better yet how is it written up. 2nd ? Who carries the note. One more thought. If you have a local private person,(friend)wanting to loan money do I call the hot line to learn how put a deal together

doesn't change the purchase of the house only the underlying paperwork that goes along with the funding of it. Typically, the deed of the house goes into your name and there is a mortgage placed against it in favor of your friend to protect his money. You merely pay him interest according to the terms the two of you worked out and cah him out when the house resells.

Now here's the tricky part. Generally speaking, if you secure your home with one investor's funds, you have no problem. However, if you also promise hime a portion of the profits, you may be crossing over into the arena of issuing a security. It is best to check the laws of the state in which you are operating.

WELL PUT Bill! "....However, if you also promise him[/her] a portion of the profits, you may be crossing over into the arena of issuing a security. It is best to check the laws of the state in which you are operating."

So far, my understanding for the use of a private money lender is because the investor (me) is already tied up, knows his credit worthiness, can't drum up money via friends & family, and needs funding. It did not cross my mind that an offer $x.00 from the resale of the acquired property via the private lender's money would be part of the agreement. I wouldn't offer my conventional bank a profit should I sell my current resident property.
Thanks [cmitchell] for the initial information defining the use of private lending. This helps me to shop around for a private lender. As you may glean from my posts ... green horn who knows little to nothing about real estate investing and very new to the DG family.
Jose