Lending to LLC where I am 25% partner​

[Vijay Jain]

Hi Lending gurus,

I am working on some remodeling project where we need 50K and I want to lend that money where I am also 25% partner.

My questions: 

• I think I can prepare a promissory note and get it notarized and get sign for remaining partner, is that correct or there is better way.
• How to safeguard my interest/money in case things go south, I know them very well but still.
• what should I include in agreement so I can get paid principle and interest timely and get late fees/charges in case installment not paid on time.
• I think I need to issue 1099 INT for 6% interest I am going to charge.

I want to keep this simple without leaving myself exposed Any template or clause needs to be added.

Let me know.

thx/

[Stephanie P.]

Originally posted by @Vijay Jain:

Hi Lending gurus,

I am working on some remodeling project where we need 50K and I want to lend that money where I am also 25% partner.

My questions: 

• I think I can prepare a promissory note and get it notarized and get sign for remaining partner, is that correct or there is better way.
• How to safeguard my interest/money in case things go south, I know them very well but still.
• what should I include in agreement so I can get paid principle and interest timely and get late fees/charges in case installment not paid on time.
• I think I need to issue 1099 INT for 6% interest I am going to charge.

I want to keep this simple without leaving myself exposed Any template or clause needs to be added.

Let me know.

thx/

You need more of an attorney than a lender.  @Tom Gimer may be able to give you a quick answer