Does anyone know where I can find information or examples of lending forms and general things to know when lending. I am preparing to use my IRA to provide loans to rehabbers. I have the self directed IRA taken care of. What I am looking for is an example of a loan contract, also what should be asked to screen potential borrowers, sample paperwork/agreement which locks me in as the second mortgage on the loan property, etc? I just want something to go by so I will not be in the dark when setting up my real paperwork with my attorney.
You need a contract to carry a seller second. Any real estate lawyer should have this. If you need your borrowers pre-approved, I would suggest speaking with someone who is a mortgage loan professional.
We generally use an application called the “1003” to prequalify applicants. You can use a shorter form of this, but I would leave these up to a mortgage loan professional. This way you don’t run into any discriminating potential lawsuits.
I suggest that you build a relationship with either a title company or a RE LAWYER because they help people like you and they ususally will tell you who they are working with and are what from they are using this is very needed because if you have to forclose you will already have your Lawyer in place to do this for you.
You can also go to a free site www.legalwiz.com