What instrument should I use to secure loan through property

Question

Hi. I am lending friends $30k to buy property and I want my loan to be secured by a promissory note (with a due date I can choose later with 1 month notice) which is secured by a deed on that property. There will be no monthly payments to me. Pretty basic stuff. However, I also want first right to buy the property at any time I choose for 30k (the money they own me) even if the value of the property has gone up a lot. Is there an elegant way to do this? Can I work this into the proimissory note perhaps? Thank you much

Jason Dillard · Answer

@Jin Kilomana a safer way to do this is for you to buy the property and give your friend a lease and an option to buy it.  I'm assuming you want to buy it in case they can't pay you back.  In this scenario, you already own it, they must buy it at some point or they loose their right to buy.

Jin Kilomana · Answer

I don't want to do that. Otherwise I would not post here. Is it common for people here to reply whatever they want instead of helping by answering a poster's question?

Craig Jeppesen · Answer

Consult a real estate attorney on your loan docs especially the note language.

Jin Kilomana · Answer

could you just answer my question please? That's what we want and you don't know the details or reasons. No one will be taken advantage of. Thanks

Wayne Brooks · Answer

So you want lend them $30k, and:

Just be able to call the Note due any time you want, with 30 days notice?

Be able to buy the house for the money you lent them no matter what they have put into it and no matter what it’s worth?

That’s ridiculous, anyone will tell you to pi$$ off.