GOT investors for a flip now what docs do I use?

[Jennifer Handlin]

HI... so I have 40K from three private money investors. I will be buying a house rehabbing it then selling ( hopefully with in six months)

I will be giving 9% on the money borrowed.

On the two larger investers I will be providing two houses I own free and clear as collertal.

The third is being backed with a car.

SO now what type of contracts do I need?

I won't be making any payments until I sell the house.

I will give a least one years interest, BUT have the loan set up to go two years if I don't sell it the first year.

Help! :) I've looked at mortages, promissory notes and other docs nothing seems to fit what I am looking for.

I will not be making payments, and will only pay when its sold or within two years and I would like to not RECORD anything I do... ;) ( ie a mortgage)

THANKS!!!

[Jon Holdman]

These sound like simple loans. I assume each of the two larger investors is each getting a house as collateral. Do a deed of trust (or mortgage, if that's what you use). You're the "grantor", the lender is the "grantee". You both fill out the doc and recorded it at the county. You would also have a promissory note that outlines the terms (payments, interest, etc.)

On the car, you would give the lender the title. To do it formally, you'd go to the DMV and get a new title that shows the lienholder, and then the lineholder would keep the new title. When you pay them off, they sign the title saying you've paid them off and they give you the title.

If I were your lender, and you said "I would like to not RECORD anything I do... ;)" that would be the end of our discussion. When I lend like this, I absolutely want the deed of trust recorded. Further, my promissory note says you cannot place any other encumbrances on the property. If you do, you are in default of my note and I will immediately foreclose. I only do loans like this if I'm in first position. I do this with a title company, who makes sure all the paper work is correct. I also require you to buy a "lender's title policy". That ensures that I'm in the position I think I'm in.