Private Lending Learning Center
Explore practical questions to ask before considering a real-estate-backed loan. These short guides are educational; every transaction calls for its own documents and independent review.

A due-diligence checklist for a property-backed loan
Start with the borrower and the property. Ask for the acquisition price, recent comparable sales or an independent valuation, renovation scope and budget, contingency, title report, insurance, and a timeline. Then ask how the loan will be repaid: sale, refinance, or another documented source. A strong project narrative is not a substitute for evidence. Review the borrower’s experience and who controls the funds and work. Ask what updates you will receive while the loan is outstanding.

Understanding the note, lien, and closing
The promissory note should spell out principal, interest, maturity, payment schedule, extension terms, fees, and default provisions. If real estate secures the note, the mortgage or deed of trust and its recording matter. Lien position depends on other claims and the closing. Ask the title or closing professional to explain the title work, disbursement, and insurance, and have your own attorney review documents. Security is a potential remedy, not a promise that money will be recovered.

Using retirement funds to explore private lending
A self-directed IRA may permit certain alternative holdings, including notes, depending on the custodian and account. Fees, timing, tax treatment, prohibited transactions, and transactions involving disqualified persons require careful review. Speak to the custodian and independent tax and legal professionals before transferring funds or committing to a specific loan.

Questions to bring to a discovery call
What is the borrower’s experience? What is the property worth and how was it valued? What could delay the project? What is the repayment plan if the first exit fails? Who holds and records the documents? What happens after a missed payment? Bring these questions when you speak with Kevin about the process.