4 Private Money Lender Documents

Whether you're raising private capital or lending out your own funds, you need these 4 documents in your toolbox.

The docs included contain terms that we find extremely useful in our very own real estate contracts!

1) A Promissory Note is a formalized "IOU" that outlines the who, what, where, when, and how of a loan.

2) A Mortgage is a recorded agreement between a borrower and lender that gives the lender the right to take the property if the borrower fails to repay the money plus interest

3) A Personal Guaranty is a promise made by an individual (person) to accept responsibility for some other party's (LLC) debt if the debtor fails to pay it.

4) Subordination Agreement allows the Private Money Lender to record their 2nd lien position mortgage while protecting the Hard Money Lender's 1st lien position.

Happy studies! 

DISCLAIMER: The sample documents offered in this digital product are for educational purposes only, and not intended for legal use under any circumstances for Real Estate Related Activities (which for the purpose of this document shall include but shall not be limited to the sale, purchase, brokerage, assignment, leasing, management, and any other activities pertaining to real estate and real estate related businesses). We strongly recommend that you consult your advisors before engaging in any Real Estate Related Activities. Furthermore, we recommend seeking legal counsel to draft, review, advise on, negotiate, and perform in accordance to any and all legal instruments pertaining to Real Estate Related Activities.