Private Money Lending Paperwork Help! Last thing I need for my first BRRR!

[Jose Vasquez Dickson]

Hey BP! Need some help! I'm soo close to my first BRRRR!

I've been able to pitch to a private money lender successfully like 2 weeks ago and with that I'll have enough capital to do my first and many more BRRRR deals! So, can someone help me with the following:

- If I use a HML to give me 75% of the purchase and 100% of the rehab and I use a PML for the remaining 25% of the purchase, what documents would I use to protect him and to make the PML feel protected? Would it be a deed of trust but in second position (not first because first would be for the HML), a promissory note, a beneficiary on the insurance, and a personal guarantee?

Something else that I was wondering about as I keep growing my PML list is the following:

- How can I structure a deal to have multiple PMLs for 100% of the purchase and rehab for a SFH deal instead of using just one PML? Who would get the the first position lien on the property?

Thank you!

[Doug Smith]

I will implore you to seek the help of a pro on this. There is a lot in your question that tells me that you need professional advice on this. For instance, there is no such thing as a deed of trust in FL. This is a lien theory state and not a deed theory state. Docing a program like this is important. You need a pro/attorney to do draft that. Trying to save money by asking this question to the BP community is like turning to Youtube to figure out how to remove your appendix. Remember that if you think its expensive to hire a professional, try hiring and amatuer to do it.