Private lending contract...

[Alan Newkirk]

Hey everyone!! Hope all is great out there in the real estate market for everyone. 

My team is starting to come together, and I am soon wanting to purchase my multi-family home out of state. I am ready to take some action. I have an investor lined out ready to write a check. Where I am getting stuck is the contract between us, and that is where I'd like to ask for help...

Anyone out there have a generic contract to start with? 

What does it cover and how are they structured? 

For you investors out there, what are some expectations that I can blow out of the water to make him want to invest more money in the next deal? 

Thanks for the help and insight 👊😁

A. Newkirk

[Megan King]

I have partnered via private lending. In Texas, you need a promissory note and Deed of Trust if you are giving a first lien position, which I definitely encourage you to give, to your investor. I have had these documents drawn up by the attorney at the title company where closing takes place. All of the document fees are passed to the borrower via their Closing Disclosure. In my private lending deals, I get monthly interest paid. The interest is high and I charge points of 2.5%. I am very happy with the returns. If you want to keep your investor happy, it's easy, they will be happy with the high interest and fees! Just be trustworthy, pay on time, that's what keeps your investor doing deals with you!