Put Your Available Capital to Work—With Education, Documentation and Due Diligence

 Protections may include:

• Property valuation or appraisal. 
• Title examination. 
• Recorded mortgage. 
• Promissory note. 
• Attorney-prepared closing documents. 
• Evidence of insurance. 
• Lender named as mortgagee or loss payee when appropriate. 
• Borrower contribution or equity. 
• Defined repayment plan. 
• Identified exit strategy.

• Borrower identity and experience. 
• Property address and type. 
• Purchase price. 
• Current and projected property value. 
• Rehabilitation budget. 
• Existing liens. 
• Proposed lien position. 
• Title condition. 
• Insurance. 
• Loan-to-value ratio. 
• Repayment schedule. 
• Exit strategy. 
• Legal documents. 
• Possible foreclosure costs and timelines. 
• Tax consequences. 
• Risk of delayed payment or loss.

• Has capital not required for immediate living expenses. 
• Understands that private lending involves risk. 
• Can tolerate possible delays or losses. 
• Is willing to conduct due diligence. 
• Will obtain independent professional advice. 
• Meets any applicable legal or financial eligibility requirements.

• Borrower default. 
• Decline in property value. 
• Incomplete rehabilitation. 
• Construction cost increases. 
• Title or lien complications. 
• Insurance problems. 
• Delayed repayment. 
• Foreclosure expense. 
• Legal expense. 
• Loss of income or principal. 
• Illiquidity.