Investor · California and Chattanooga · Member since 2023 · 6 posts · 2 votes
Hi all, I have a friend / private money person who is going to lend me money to buy a property. I know I will be writing a prommisary note that I'll get notarized. But I also want to give him security of having a lien on a property that is not the subject property. How to do I do this? Both properties are in California. Thanks!
You don’t borrow what could be a life-changing amount of money from a friend and have them obtain their docs through a title company, @Lynne Castillo. Title companies have lawyers, but they are not your friend’s lawyer. Nor will a title company provide a complete loan package.
Your friend needs a lending attorney to prepare a set of loan documents. Here are a few that I know can help:
For what it’s worth, notes do not get notarized. Depending on the interest rate and points, this might require a broker. The attorney will advise. Don’t try to do this on your own, Lynn. And, be careful of the advice you get here.
Lynne, Work with an experienced real estate attorney, who is also experienced in private lending contracts, terms and conditions. Money spent now will save huge headaches later.
You don’t borrow what could be a life-changing amount of money from a friend and have them obtain their docs through a title company, @Lynne Castillo. Title companies have lawyers, but they are not your friend’s lawyer. Nor will a title company provide a complete loan package.
Your friend needs a lending attorney to prepare a set of loan documents. Here are a few that I know can help:
For what it’s worth, notes do not get notarized. Depending on the interest rate and points, this might require a broker. The attorney will advise. Don’t try to do this on your own, Lynn. And, be careful of the advice you get here.