Investor · Maui, HI · Member since 2012 · 232 posts · 96 votes
Hi BP family,
Through what avenue do you actually draft a promissory note and mortgage deed for a private investor? I have finally convinced a private investor to carry a 65% ARV note on a property of mine. This is not a new purchase, but a cash out refi. The mortgagee would have first lien. The LLC is in wisconsin, I the owner lives in CA and the investor lives in CA. This is my first time with private investors. How are you drafting your notes and mortgage deeds?
I saw numerous online do-it-yourself lawyer websites and did try one out. It wasn't too complicated, and I understand I would need to notarized the docs and file them with the recorder's office. It almost seemed too easy and cheap for me. Is this what everyone is doing? I also contacted a few title companies. they don't do it. So I did call some attorneys and am waiting to hear back. Any insights? Thanks. Nazz
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
Even if you find something online you like, have it reviewed by an attorney in your area that's experience with this sort of transaction. This is a highly regulated business. Running afoul of relevant laws can be expensive.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y
Although title co's can't offer legal advice, mine will have an attorney or two that are local and draw up notes and deeds of trust for like $250. The docs will pertain to the state and locale of the property. Basically what @Lisa Kohl and @Bob E. suggest!
Residential Real Estate Agent · Groveland, FL · Member since 2012 · 504 posts · 395 votes
11y
Use an attorney. When you use an attorney, you are entitled to ask questions, after the transaction, if questions arise. So, it's not just a paper deal. It is advice, which can be very helpful. If litigation is needed, the fee you paid is not applicable, but the attorney would be the one you would call for defense, in most cases.