How do I secure someone's $$ with a promissary note against real estate?

General Real Estate Investing
1

I found an investor who will lend me 60K for my downpayment and holding period for a property I’m interested in for 120 days with a roi of 20k . The property I want has an ltv of 55% My question is, how do I take this guy’s funds and secure it against the property before I open up escrow. I would love to take him to the opening table and have him drop my downpayment but then that would put him on the title as a partner. Can I give him a promissary note against the property before I control the prop or open escrow.

Donna Bauer “the note buyer” illustrate a smiliar example. She raise the downpayment with a promissary note but I don’t understand the mechanics.

Thanks alot everyone, I love this board.

2

Hey Rightfield I’m in Leftfield on this so,
Need more info.
Are you doing a Land Contract, Trust Deed or Wrap?
Donna might be saying to draft a 2nd and sell it for a Downpayment??
Herbster

3

To be absolute about the security of someone you don’t know - make it legal - everyone can talk a good talk - so just be legal about it.

Linda

4

Investor should submit his money directly to escrow. He does not have to be put on title as partner. You just need to instruct escrow to draft a promissory note to give him at the close.