Lending Checklist – Private Lender Playbook

Private Lender Playbook

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Private Lender Deal Checklist

Use this checklist to confidently complete your first private lending deal.

1. Before agreeing to a Deal

Understand the basics of private mortgage lending

Confirm your desired loan amount and return expectations

Define your preferred term length

Decide how involved you want to be (active vs. truly passive)

2. Vet the Borrower

Review borrower’s track record and references

Ask how many deals they've completed

Confirm their plan for the property (fix/flip, rental, etc.)

Discuss their backup plans if things don’t go as expected

Find out if they are contributing their own capital to the project

3. Evaluate the Deal

Review After Repair Value (ARV)

Review purchase price and rehab budget

Verify loan-to-value (LTV) is conservative (≤ 75%)

Understand the exit strategy (sale, refi, etc.)

Review comps and rental income potential if long-term hold

4. Secure Your Investment

Deed of Trust (or Mortgage) secured to the property in your name

Promissory Note drafted with interest rate, term, and payment terms

Title Insurance policy in place with you listed as lender

Hazard Insurance with you listed as mortgagee/loss payee

Closing handled by licensed title company or attorney

Funds wired only to title/escrow—not borrower directly

5. Post-Closing

Receive executed copies of Note, Deed of Trust, Title Policy, and Insurance

Set up a payment tracking system or portal (monthly or deferred)

Maintain communication with the borrower for project updates

Monitor loan maturity and ensure on-time payoff or refinance

Bonus: Red Flags to Watch For

Borrower wants funds directly

No title company or attorney involved

Poor or missing documentation

High LTV

Returns sound too good to be true

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