In a promissory note there the terms would be outlined in the note agreement (interest rate, length of the loan, pre-payment penalties, etc.).

Sahegin, see the attached HardMoney worksheet from BP which outlines some of the expenses including points, holding cost etc., This might help a bit.

As a checkbook holder and trustee, you have the control to fund these investments and the decision making authority to structure deals to your liking (shorter term, higher interest, etc.)I'm sure it's just how you chose to word it, but I will caution you anyway that "becoming a lender" sounds a bit like a business whereas what you are doing instead is directing your 401k to make passive investments.The key needs here are a way to contact and negotiate with those who may need loans and some appropriate loan paperwork to outline the terms and secure your 401k's interest in the investment.

For people familiar with the pockets, what you should do is outline the streets/areas you like and then follow everything that comes on the market/sells.

In addition, the policy outlines authorities for approval of credit requests at various lending amounts.

I understand the allure of "business on a handshake" but you should have something in writing outlining your agreement in the event of disagreements or you end up in litigation. 

Especially in the case you outlined where you don't have a ton of capital to stick into rehabs/fixing it up.

I am not sure if the sellers look favorably on all cash deal (in which case I could do $190k all cash) but otherwise $250k with 10% down homeopath loan is what I would say is my best and highest offer.I hope in this email, I have outlined my investing strategy and the way I think of the "numbers" and if this template is useful for you to bring me other deals that fit my "formula", I would be most grateful.

DO NOT BE AFRAID to outline high costs for rehabbing to current code -- complete new wiring, plumbing, 100% new drywall, ceilings and floors, windows and doors, kitchens and baths --- porches, landscape-- are not cheap.

I'm working on creating a pitch book to outline the investment strategy of our commercial real estate syndication business.