Borrowing money from a friend for building a home

[kmerr98277]

What is the name of your state (only U.S. law)? Washington

I would like to borrow money from a friend (either friend's cash or friend's line of credit) to build a home. I am a carpenter/general contractor and already own the land. Is there a way to do this (a legal contract) where the lender could secure the loan? Most banks require a contractor to have built at least 5 homes before they will lend money, which I have not. Thanks.

 

[Zigner]

What is the name of your state (only U.S. law)? Washington

I would like to borrow money from a friend (either friend's cash or friend's line of credit) to build a home. I am a carpenter/general contractor and already own the land. Is there a way to do this (a legal contract) where the lender could secure the loan? Most banks require a contractor to have built at least 5 homes before they will lend money, which I have not. Thanks.

Consult with a real estate attorney.

Your request is beyond the scope of this (or any) internet forum. Really.

 

[adjusterjack]

What is the name of your state (only U.S. law)? Washington

I would like to borrow money from a friend (either friend's cash or friend's line of credit) to build a home. I am a carpenter/general contractor and already own the land. Is there a way to do this (a legal contract) where the lender could secure the loan?

Yes.

In Washington you use a deed of trust.

Hire a lawyer to create and record the documents for you and your friend.