Whats questions should I be asking if I am going to do some “private money” loans? Can I ask for a Note and Deed of Trust or make one myself for lending my own funds?
Depending on how you deal is structured, any combination of a note, mortgage and deed. Whatever will make you comfortable.
To protect yourself, you may want to have a real estate attornery at a Title Company Prepare the Documents for you. Also, make sure you require owner’s and lender’s title insurance for the buyer. They buyer has to pay these. In addition, I would make sure that there is enough equity in the subject property to protect your interest. If not, have the borrower secure your interest with more collateral, like another property, etc.
Hope this helps. It is a good thing to be in a position where you are the lender.
Thanks all for your advice. Lucky for me I am protected by two properties with atleast 30% equity in both. I appreciate all the emails I got.