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Please help with private investor contract!
I have an offer accepted on my first deal and am using a private investor to fund it. I am having a really hard time finding out how to get a contract written up with the loan terms and everything. I called a real estate attorney today and they said they don't do that. Is there an online service I can use? Also, does the loan have to be secured by the property with a deed or trust? It seems like having to do a release deed/ reconveyance is just another process and I am trying to make this very simple. Thanks in advance.
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I will share my fellow investor, not RE professional, experience... I'm a little surprised that you as borrower are having to draft the note. When I have offered a private loan to someone I have my attorney write the Note (my money, my rules) with the terms we agreed upon. It does not have to be secured but as the lender, I'm not going to risk my $$ w/o protecting my interest if you default. I would want my first position in the loan to be in the public records if you decide to sell the property. I would have no other "contract" with you the borrower other than the signed note.
A secured note is not a complicated process. The mortgage is recorded in the local county office. If you sell or refinance or pay off, as the lender I would simply file a one page "satisfaction of mortgage" and we are done. There is no "reconveyance" at that point.
I'm sure you could find an on line source but there are state specific rules. I would persist in finding an attorney who will work with you. Across different states I've been charged $150-$500 to draft secured mortgage docs. It is in everyone's interest to have a loan properly documented.