private mortgage help please

Financing, Hard Money Lenders, Private Money
1

Ok, I’m sure this question has been answered before, so I apologize. Anyway, I put together a deal, and all the pieces are in place. I have a private investor that is funding the cash, and I have a couple questions.

I think that I need to fill out a deed of trust or a mortgage for the investor (they use both in my state, although deeds of trust are typical for loans <500k). Does anyone have one they have used or know of where I can get one? Also, when I’m dealing with the title company for closing, do I tell them that this is a cash purchase, or do I tell them that there is a lender involved so that they process the deed of trust?

If they proceed as though there was a lender involved, will this raise the closing costs, and if so, can I have the investor fund the deal and then record the deed of trust separately, or will the cost of doing so equal the cost of the title company taking care of the work?

I’m not really interested in doing a LP or LLC for the property, it is set up more as a private hard money loan so he is only making his money in interest points. If anyone has any help for me I’d appreciate it.

Thanks!

2

First… If you are closing at a title company anyway there should not be an extra charge for doing a mortgage right there for your private investor.
Second… You should be able to get a standard note and mortgage from your local title company and then fill it out with your investor as the first secured. Make sure he is also additional insured on your home owners insurance in the event something would happen. Recording a deed will cost the same weather you do it or the title company does it.
Our title company does all kinds of stuff for me…but then again I have established a great relationship with them.
Take one of them to lunch, get to know them and send them all the business you can. It always helps when you need a little extra help.
Good Luck