Summit
30-01-2008, 04:57 AM
Perhaps in common with many people here I have some surplus cash and I am increasingly being asked to make it available to fellow investors who wish to borrow it for closed bridging. In theory at least I'm perfectly happy to do this on the basis that, even at a modest percentage, I'm doing well for what is after all very little effort on my part.
However, it seems to me that there is an element of risk in sending £100k+ to the client account of an unknown solicitor, especially when the borrower is best known to me as XXX from YYY forum or ZZZ property meet, with little more personal contact than that.
I know that many others do this successfully, and make a good income from it, however... so it's clearly a good thing to do.
Are there any checks that I should carry out on the recipient solicitor and/or individual before loaning money? Is there any particular form of words that should precede or accompany the money? Should I have a solicitor of my own, representing my side of the transaction (and if so, any suggestions who)?
As you can tell, I'm very much a beginner on the matter of providing bridging finance, so any and all advice will be very gratefully received.
However, it seems to me that there is an element of risk in sending £100k+ to the client account of an unknown solicitor, especially when the borrower is best known to me as XXX from YYY forum or ZZZ property meet, with little more personal contact than that.
I know that many others do this successfully, and make a good income from it, however... so it's clearly a good thing to do.
Are there any checks that I should carry out on the recipient solicitor and/or individual before loaning money? Is there any particular form of words that should precede or accompany the money? Should I have a solicitor of my own, representing my side of the transaction (and if so, any suggestions who)?
As you can tell, I'm very much a beginner on the matter of providing bridging finance, so any and all advice will be very gratefully received.