OfflineI have an investor putting up 25k for us to do a rehab. Do we have a contract for a note or does someone have one I can use?
Also, do you normally record this note?
__________________
JP
USA HOmebuyers
Note for private investor
Posted on: Fri, 07/25/2014 - 17:19
Note for private investor
-
- by USAHomebuyers
- Login to post comments
It depends on what your lender wants...
You can do a secured note (Mortgage or Deed of Trust) that you then record with the county recorder. I do a Promissory Note that is attached to the Mortgage. This is the best way to do it, because it forces you to give the house to the lender if you default. I have once not recorded, it saved a few bucks, but it was still a legal note no matter what, and between partners with massive trust (though if you were corrupt and did ANOTHER note with someone else, that would be fraud and you'd go to Prison...) I now always record notes, it's VERY simple to do with your Title Agent.
You can do an unsecured "Master Promissory Note" - a claim on the LLC or personally signing for it (I've also done this but I will not do this ever again, it is imprecise and doesn't hold you absolutely accountable).
To prepare your documents, find an Attorney that prepares documents and pay them to prepare one. I did this once, and then have used the identical form (it was a prefilled form he filled in) with my information since then. Ask a few Title Companies to find the best price... it shouldn't be more than a couple hundred (mine was $125, very cheap).
I have a Promissory Note Template, you can PM me your email and I'll send it to you!
Never, never, never give up!
Mark