I have been asked by my handyman to provide him with a loan (in Florida) for the purpose of (1) purchasing two mobile homes - one of which he intends to rehab and live in and the other he will rehab and rent out; and (2) provide him the funding necessary for the materials he'll need for the rehab. We've agreed on a 10-year loan, 10% interest rate, no prepayment penalty. Its a fairly modest loan size so I dont expect he will have difficulty keeping up with payments. (Famous last words.)
Also, if he changes his mind about the 2nd mobile and decides to sell it, we've agreed to share in the net profit.
This is my first time acting as a private lender. Would someone either have a model / template contract they use for lending money they can share with me, or direct me to a place online I could find an appropriate template to work with? (Apologies if this has been asked on the forum before, sometimes its hard to search for the right topic in the forums.)
Give me a call.
Have an attorney draw up the note for the loan. Don't use a template off the internet that does not take into consideration state law. Depending on your state law you may have to register the sale with a state agency. Since it is not real estate I would file a UCC. Also on the note list the serial numbers of the trailers. Depending on age of mobile homes this could be on the exterior or some place iside the home. I have found them on walls next to the water hearter or interior side of a utility door. If they are double wide you will then have two serial numbers per trailer.
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