How to set up Promissory Note Structure

[Michael Caldwell]

Hello, my real estate investment partner and I are in talks with a party about getting a $1-2M promissory note in place, which we would draw on to make acquisitions of 12-25 single family homes over the next year or so.

Our counterparty has an attorney, who I believe would draft up the promissory note and personal guarantee documentation. I believe we’d also need to cross-collateralize our 2 existing properties (Florida and Virginia) as part of this. I understand there’s some nuance state-to-state in terms of deed of trust usage vs. using a mortgage for the second lien position (our investor in this case).

So that we can arm ourselves with the most knowledge going into discussions, could anyone advise what the setup process actually looks like here? How much in legal fees to prepare for?

also open to attorney recs who could help us with this