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Updated almost 9 years ago on . Most recent reply

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Lucky Solomon
  • Investor
  • Brookeville, MD
1
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Participatory Notes (?)

Lucky Solomon
  • Investor
  • Brookeville, MD
Posted

I'm interested in loaning money to my GF for a quick flip she has under contract. Rather than have her sign a simple Note (and maybe a mortgage securing the Note), I would rather get a percentage of the profit from the sale of that flip. I've heard that such Notes are called "Participatory Notes."  Is this correct? If not, what are they called and where can I get a template I can use to draft one? 

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
63,186
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied

you can customize a prom note to include an equity share provision.. no real template something you create for the transaction.. I have done this many many times..

my favorite was with smaller developers were I took some of the upside

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JLH Capital Partners

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