Real Estate Investor · Oceanside, CA · Member since 2011 · 14 posts · 2 votes
I need an expert on trust deeds to review loan documents and advise me. I am willing to pay for the service. The funds will be coming from my IRA and will be for short term loans to wholesalers and flippers and possibly for transactional funding in California. The principle is about $70,000.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
15y
I see two issues here, David:
First, I assume your loan will exceed 10% APR including points. If so, it's userious in California unless you use a broker to originate the loan, and then assign everything to your IRA. Brokers that do this are easy to find and will work for a nominal fee. They can also provide most of the paperwork you or your IRA will need such as the deed of trust, note, and assignment agreement. They'll also know the other paperwork required such as the 1003, TIL, credit reports, occupancy agreements, and an unbelievable host of others.
Second, you might use as many standard Fannie Mae docs as possible to make a legal review easy. The deed of trust in particular. Any respectable broker or title company will have these as well as a generic note. Unless you’re doing something weird, there’s little you should change except for the note. You’ll want at least this reviewed by a lawyer with lending experience, not someone you met on an internet website. In fact, a good lending attorney can go over the whole process for you to help you protect yourself and maybe even keep your broker out of trouble. You’ll only have to do this once with maybe an occasional follow-up question.