Wow I kinda laid to rest bitcoin interest in such deals,
Not a scam at all, your money is protected. I will explain, if you have questions please ask I love to talk real estate
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That is correct the lender will get the money back + interest. If that is how the deal is structured.
The second choice is whats called equity partners, this is when the lender and the flipper splits the profit 50/50 this is usually how it works for the first time. It is a way you prove to your money you can do the deal and make them money.
Now in response to the foreclosure, the simplest and easiest way to make a 0 cost foreclosure is to purchase the property under a LLC. The private money lender holds 51% of LLC so if the borrower defaults he can sell the property at any time. This cost 0 dollars and can be done in a matter of days.
BTW on the property listed above the person who purchased it made 26k off it after all costs.
Your LLC idea increases the risk to the lender. It would prevent the lender from going after the borrower personally, and this ability gives the borrower an incentive to repaying even if the project fails. Not a scam at all, your money is protected. I will explain, if you have questions please ask I love to talk real estate
.That is correct the lender will get the money back + interest. If that is how the deal is structured.
The second choice is whats called equity partners, this is when the lender and the flipper splits the profit 50/50 this is usually how it works for the first time. It is a way you prove to your money you can do the deal and make them money.
Now in response to the foreclosure, the simplest and easiest way to make a 0 cost foreclosure is to purchase the property under a LLC. The private money lender holds 51% of LLC so if the borrower defaults he can sell the property at any time. This cost 0 dollars and can be done in a matter of days.
BTW on the property listed above the person who purchased it made 26k off it after all costs.
Also it appears that the lender is taking on the vast majority (90%+) of the risk but only sharing in 50% of the profit
this does not seem fair to me