Private lender contract

2 Replies

Hello all,

I have a private lender who is lending me money on a property I have under contract. What type of contract do I need to draw up? Also in the contract do I need to state that I have 100% control of the decisions? I know that he will go first on the title. Any help that you can give me would be greatly appreciated.

Thanks

Emma

Your lender should issue you a commitment letter outlining the terms.  At closing, you will sign a note and deed of trust or mortgage (depending on Maryland requirements).  There will likely be several other documents signed as well, but these two documents will set forth most of the rights and obligations of both parties.  Your lender will not go on title, but will have a first lien secured by the property.  A local title company or attorney should be able to help you with the specifics based on your locale.  Good luck

As far as your statement about 100% control: 

As long as your paperwork reflects what Jeff outlined above,  you won't need additional paperwork to clarify, unless you are talking to your private lender about more of a partnership, in which case there would need to be a completely different arrangement.