Loan Agreement for use with Private Lenders?

Loan Agreement for use with Private Lenders?

Hi guys!! It's been a long time. I have been in talks with a friend of a friend who happens to have some money collecting dust that he'd like to put to use. I'm in the middle of a flip using an HML and I'm about to start another, I would LOVE to go the private route and save some points and interest. I looked in the forms and docs and I dont see anything that would help legalize a loan from a private lender... does anyone have any info on this? I'm basically just going to do a 6 month term for 10% interest, with the interest rolled in to the loan. I want to make sure it is 100% legal and that I don't have problems come tax time, with them wondering where the money came from. Is it best to do it like a standard loan, or should it be secured by the property like a mortgage? Any advice on this matter from someone with experience with private lenders would be greatly appreciated! Thanks in advance!



Skeptic, turned hopeful, turned determined!
You will NEVER succeed if you don't try.


tejanita81, consult your Attorney. He or She may have the legal answers that apply to you.

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