Short-Term Loan Agreement

[Matt Rutter]

Hey Everyone,

We're looking for a short-term loan document to outline the terms of a private loan.

Without going into too many details, we are in the process of acquiring a new MFH rental property and borrowed about $60,000 from family to be repaid over 10 years with 3% interest. Their names will be on the title and mortgage since that is where the money is coming from, however, the agreement and plan is to refinance them off the title and mortgage at a later point since this is a short-term loan, and not an equity stake in the property. I realize there might be an easier way to have done this in the future, but those are the current logistics given our first time using private money.

I'm looking for a document that might cover those details.

Thanks!

[Matt Rutter]

Sorry for the delay!  We used one of those legal websites and here is the language we used with repayment specific to our situation.

Loan Agreement

Dated: __________

FOR VALUE RECEIVED, the undersigned, NAMES (the "Borrower"), located at ADDRESS, hereby promises to pay to the order of NAMES, (the "Lender"), located at ADDRESS, the principal sum of $XXXX together with annual interest of X% on the principal balance, and in accordance with the terms set forth below.

Payment. The principal amount of this Loan together with accrued and unpaid interest and all other charges, costs and expenses, is due and payable on or before DATE. The minimum principal amount due each year on or before DATE is $XXXX. All payments under this Agreement are applied first to accrued interest and then to the balance of the outstanding principal.

Prepayment. The Borrower has the right to prepay all or any part of the principal amount of this Loan, together with accrued and unpaid interest thereon, at any time without prepayment penalty or premium of any kind.

Costs and Fees. In the event of default, the Borrower shall pay to the Lender all costs of collection including reasonable attorney's fees.

Waiver. The Borrower and all sureties, guarantors and endorsers hereof, waive presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Loan.

Successors and Assigns. This Loan will inure to the benefit of and be binding on the respective successors and permitted assigns of the Borrower. The Borrower may not assign its rights or delegate its duties under this Loan without the Lender’s prior written consent.

Joint and Several Liability. If there is more than one Borrower of this Loan, the obligation of each Borrower shall be joint and several under this Loan.

Amendment. This Loan may be amended or modified only by a written agreement signed by the Borrower and Lender.

Severability. In the event that any of the provisions of this Loan are held to be invalid or unenforceable in whole or in part, the remaining provisions shall not be affected and shall continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Loan.

Notifications. Any notice or communication under this Loan must be in writing and sent via one of the following options: Mail, Email.

Governing Law. This Loan shall be governed by and construed in accordance with the laws of Ohio.

IN WITNESS WHEREOF, the undersigned has executed this Loan Agreement as of the date first stated above.

________________________________________

Signature of Borrower / Date

________________________________________

Signature of Lender / Date