construction loan agreement

I am working on a small development and am looking for templates for private money agreements. I am finding it difficult to come up with one for a construction loan with all the related issues. Even my attorney doesn’t have access to anything and says we need to create it from scratch. Anyone know where I might find one?



I need more information as to the type of agreement as your talking about private money agreements for:

Fractional Investment?
Real Estate Investment Trust?
Individual Single Party?

Is this for a LLC, C Corp, S-Corp, LLP or LP?

Is this for a 1st TD or 1st TD with Subordination?



I am not familiar with most of what you mention but I will attempt to give more info. I am doing business as an LLC. I have a piece of property that I am developing to build a number of small houses. The first house will be on spec, and I have an individual private lender willing to invest in the project by funding the construction and holding a mortgage short term if necessary. I need a construction loan agreement that can convert to a mortgage (similar to what a bank has when they finance construction).



For what your doing use a local escrow / title company to handle the paper work and filing. Since this is not a sale and purchase, cost's to handle the paper work and filings will be nominal and this will insure chain of title, etc.

The escrow / title company has a broad range of contractual agreements which fit your need and state.

Good luck,


You need a construction loan from a local bank. You will have better luck with a locally-owned or smaller bank. They want to make investments right in their community to people they know and trust. Also try local credit unions.

Now just get on the phone and start calling those banks you drive by all the time with your list of questions:
Do you make construction loans?
What are the requirements?
What is the term and the interest?

Good luck,