Promissory Notes for Private Lenders

[Karla Kahmeyer]

Hello KC BP community

I'm exploring using a private lender for financing, and have a couple of process questions. 

1- Do you typically set your notes so that there are no pre-payment penalties? 

2 - If its a 12 month note, and you are able to refinance at 8 months to pay off the note, how do you handle the amount of interest that you are paying them (ie.. are you prorating it for the 8 months, or do you go ahead and pay them the full interest for the 12 months)?

3 - Does anyone have a recommendation for an attorney they use to write up the promissory notes?

Thanks everyone!

Karla