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Updated over 6 years ago,
Hard Money Promissory Note Non Standard Clauses?
Hi,
I'm a hard money lender. I previously lived near Denver and my deals were structured whereby I purchased each house outright and the flipper flipped it and got it sold and kept all the profit other than my interest rate. Now that I've moved to Tennessee I'm going to start using promissory notes and Deeds of Trust. I've used them before but not a ton so I wanted to ask: What custom clauses do you put in your promissory note or deed of trust to make a safer loan than a standard promissory note, if any?
For instance there may be a clause that the borrower cannot move into the house. Is there anything else you'd put in a note or deed to make the loan safer?
Thank you,
Steve