Security Agreements for buying notes with funds borrowed from someone's IRA
This is my first go at borrowing funds from a lenders IRA to buy 2nd NP notes and for some reason the concept of using a note as collateral for a prom note is confusing me. I am sure I am over analyzing this.
I am the borrower and the custodian of the Private Lender is Equity Trust. I am going to be purchasing 3 notes for about 25k and plan to borrow 35k(10k is going to be used for servicing and legal fees etc). What documents do you give the custodian to complete this transaction and if anyone has any templates I could use I would really appreciate it.
To my understanding the lender will need:
1)Direction Of Investment form by ET filled out
2) A prom note from me with terms( Here too the note for a note concept has me stumped)
3) Security Agreement- I am not sure of the verbiage I need for this to provide to the lender to give to ET???
Will I need to fill out 3 separate agreements since it is 3 different notes?
Thanks for your advice, I really appreciate it!