How do I structure Private Money Lending in NY?

[Josh Miller]

 I use private funding on all my purchases and typically I issue a mortgage and promissory note but amazing New York decided that they want to have a "mortgage tax".  My thought is to use a rental property I own free-and-clear in a different state as collateral  and use those funds to make the NY home purchase.  Only issue with this is now I have to re-do Title and get a new Deed and that is also going to cost me.  Were not talking a lot of money here, probably only about $2k in mortgage taxes so I'm not going to die if I have to pay it but wondering if anyone has experienced a similar situation and knows of a way to protect the private lender and pay as little in taxes or other fees as possible.  Appreciate any help you can provide.  Thanks

[Randi Plevy]

Hi Josh.  I am counsel to a private lender in New York, and if the deal is right, this lender will only record a UCC1 as a lien on the property.  No mortgage tax required.