Clear Answers
Frequently Asked Questions
Direct answers to what private lenders ask most — including how seller finance connects to your investment.
Review a specific deal summary and documents. If it fits, escrow/title prepares closing, you fund to escrow/title, and payments begin per the note.
The homes funded by private lenders are sold on seller finance terms directly to families who have the income to make payments but can't qualify through a traditional bank. Instead of a bank approving the buyer, the seller (BuyandFund Homes) finances the purchase. The buyer makes monthly payments and builds equity in their home. Those incoming payments are what service your note — creating a real payment source tied to a real occupant from day one.
Many opportunities are structured around a 5-year amortization with monthly payments, but final terms depend on the specific deal and signed closing documents.
Your investment is protected by three layers: (1) a promissory note defining all terms and repayment schedule, (2) a recorded deed of trust/mortgage placing you in 1st lien position on the property — meaning no other creditor takes priority, and (3) funds wired to escrow/title at closing, not directly to the operator.
No. Funds are wired to escrow/title at closing — not directly to the operator. This is one of the key structural protections in these deals.
A recorded security instrument (deed of trust or mortgage) filed in the public property records of that county, securing the obligation against the specific real property. It means your claim on the property is documented and enforceable — not just a handshake.
Default remedies are defined in the documents and governed by state law. The property serves as collateral. Operators typically plan for remarketing or resale of the property in default scenarios. Always review your specific deal documents before funding.
Payment servicing varies by deal structure. Confirm who collects and disburses payments and how reporting works for your specific transaction before closing.
Minimums vary by deal. Confirm current minimums during your call with Linda.
Selection criteria typically include purchase discount, market demand, property condition, quality of seller-finance buyer, and the strength of the exit/repayment structure. The goal is a deal that works for all parties — lender, operator, and homebuyer.
These notes are generally not as liquid as publicly traded assets. Plan to hold through the expected term unless the documents allow transfer or sale. Private lending is best suited for capital you don't need on short notice.
Tax reporting varies by structure and jurisdiction. Ask your tax advisor and confirm how interest income is reported for your specific deal.
Private lenders in our program hold a 1st lien position. This means your recorded deed of trust/mortgage takes priority over any other claim on the property. No second mortgages or competing liens are placed ahead of you. This is confirmed through title work at closing.
You receive a plain-language deal summary plus the actual promissory note and security documents prepared for closing. Review them carefully — and consult your attorney if needed.
Often yes. Many lenders reinvest their returned principal into additional notes as deals become available. Confirm availability and timing when you're ready.