What is the term of the loan? Or, how long will this loan last?

Here’s another question about how my private lender program works that I answer in the private lending FAQ. As you put together your own private lender program and FAQs, you may want to include this one.

The question can be phrased two ways: What is the term of the loan? Or, how long will this loan last?

Here is my answer:

The term or length of the loan is determined by you as the private lender and us as the borrower in advance of the loan being made.

It is determined in part on the particular property and what we plan to do with the property.

If we plan to keep the property as a long term rental, we would prefer a longer term loan period which would be ideal for someone who is looking for a steady return for a long period of time.

If your needs are more short term, you might be more interested in a property that we are buying to fix up and immediately resell or maybe even a property that we will quick turn to another investor.

If you have specific limitations on the duration you can lend, let’s discuss it and see how we might be able to structure a loan that works for you and for the property we are buying.

Until my next post,

James

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