1st deal help - Question about private lending trust deed/power of sale
Hi BP members,
I am working on my first flip deal and need some help on properly structuring the deal - especially the trust deed.
I have a private lender (a family friend) who will finance/fund the whole deal - purchase price + rehab cost etc., fixed interest 12% and no payment for first six months, repay when property is sold within the year. I am thinking going the promissory note and trust deed route.
My question is on the power of sale part - we both agreed that in event that I cannot repay the loan, I would give up the property and he can gain full control without having to foreclose. What is the proper way? to include this in the deed? Or I can just instruct the title company to transfer the title to my lender? how does that works?