Using private money in California
I currently fund my California fix and flips with a mixture of Hard Money and Private Money. I create a promissory note for the PM and record it as a second lien against the property.
With the current requirement in California that a broker must do real estate loans, can someone instruct me on how to do this properly? Are the following steps correct.
1. I find a deal and present it to PM.
2. I find a broker and give him the promissory note that I have created.
3. I sign it, the PM signs it, and the broker signs it. Is this correct.
4. I then pay the broker a fee. Is this correct and how much?
What happens if I don't do this with a broker?