Need template for investors and property owner investment agreement

DK123

New Forum Member
Registered
Greetings All!

I am looking to raise some capital for my properties for renovations. I need to get a copy of a sample agreement.

Something to the effect that I get a loan, do renovations and put a house for sale.

Maybe somebody has done similar thing and can give me further advise.

Many thanks,

DK
 

2ndstory

New Forum Member
Registered
Whatever you do, you may want to consult a lawyer's advice and have them help you draw up an agreement. Can you provide more details of what it is that you are planning?



Nik
 

WadeFenner

Inspired Forum Member
Is this what you're looking for?



I use this as a coffee shop agreement, that my lender signs, then my lawyer will use it to draw up a formal mortgage agreement.



Let me know if the doc doesn't load. Attached files Commitment Letter Blank.doc (38 KB)Â
 

DK123

New Forum Member
Registered
Hi Nik,

Thanks for your note. My situation is simple. I need some money to complete renovation in one of the duplexes that I own. After the reno I want to sell it and give the original loan back to the investor and split the profits accordingly.

The investor's concerns are that if we do not sell the house for he price estimated he many not get the profit that was promised to him. The original loan amount will be registered as a second mortgage, however, it is the other part that is problematic. How to structure an agreement that includes provision for selling the house and splitting the profits.

DK
 

bizaro86

Frequent Forum Member
Registered
[quote user=dmitrik]I want to sell it and give the original loan back to the investor and split the profits accordingly.




Would he prefer to be compensated with interest, instead of an equity share of the profits? IE, instead of your lender getting his money back plus half the profits, would he rather get his money back plus 10% (or whatever) interest per year? That way his rate of return is fixed, and doesn't depend on the outcome of the renovation. Might be an option that allows you to keep more of the upside, if you're confident that your plan will create value.
 

Thomas Beyer

Senior Forum Member
REIN Member
[quote user=dmitrik]The original loan amount will be registered as a second mortgage, however, it is the other part that is problematic. How to structure an agreement that includes provision for selling the house and splitting the profits.


You could have a loan/mortgage agreement with a variable rate of return, instead of fixed one.
 
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