Document support for California private real estate lenders.

Who this is for

Private real estate lending is a wide category. The clients I work with most often include:

• Family lenders. A parent loaning money to a child to buy their first home. A grandparent funding a grandchild's down payment. The "Bank of Mom and Dad" — but with real paperwork, real interest, and real protection if things go sideways.
• Private money investors. Individuals or small partnerships making fix-and-flip loans, bridge loans, or short-term financing on California real estate.
• Seller financing. When a seller carries back part or all of a purchase price for a buyer who can't get conventional financing.
• Refinances or modifications of existing private loans — new terms, extended dates, modified collateral.

The three documents you need

The Promissory Note — $150

The promissory note is the legally binding loan agreement between the borrower and the lender. It spells out:

• The loan amount
• The interest rate (and whether it's fixed or variable)
• The payment schedule — monthly amortizing, interest-only, balloon, or some combination
• The maturity date
• Late payment terms and default provisions
• Prepayment terms (whether the borrower can pay it off early without penalty)
• Acceleration clauses and remedies if the borrower defaults
• Any other negotiated terms specific to the deal

I draft the note at your specific direction — you decide the terms, I make sure they're documented correctly and unambiguously. A note prepared from an internet template often misses California-specific requirements or contains clauses that won't hold up if the loan goes bad.

The Deed of Trust — $150

The deed of trust is what secures the loan against the borrower's real property. Without it, you have an unsecured loan — meaning if the borrower defaults, you'd have to sue them personally to recover the money, with no claim to the property they used your money to buy.

With a properly drafted and recorded deed of trust, the property itself stands as collateral. If the borrower defaults, you have the right to foreclose on the property to recover what you're owed.

The deed of trust is recorded with the County Recorder, which makes the lien public — anyone searching title on the property will see your claim, and the property can't be sold or refinanced without your release.

The Reconveyance — $150

The reconveyance is the document that formally releases your lien once the loan is paid in full. It's also recorded with the County Recorder, which clears the property's title and confirms the loan is satisfied.

This is the document many private lenders forget — and the one that causes the most trouble years later. If you don't record a reconveyance, the lien stays on title indefinitely, even after the loan is paid. When the borrower goes to sell or refinance, they (or their heirs) have to track you down and get a reconveyance — sometimes years after the loan ended, sometimes after you've passed away. Recording the reconveyance promptly when the loan is paid keeps everyone's title clean.

Why work with me on this

I spent 16 years as a mortgage lender before becoming a Legal Document Assistant. I've prepared and reviewed thousands of promissory notes, deeds of trust, and related loan documents inside institutional lending. I hold an inactive California Real Estate Broker license and I've completed over 10,000 loan signings as a certified Notary Signing Agent.

That background matters here. Private lender paperwork sits at the intersection of estate planning, real estate, and lending — three areas most LDAs don't have deep experience in. Many Stockton-area LDAs don't accept private lender work at all, and the ones who do often treat it as an afterthought. I treat it as a core service.

The process

1. Free initial conversation

   We talk through the deal structure — who's lending what to whom, against what collateral, on what terms. I'll let you know if it's a clean LDA matter or if anything in the structure warrants an attorney's review before we proceed.

2. You tell me the terms

   You decide the amount, rate, schedule, and special provisions. I prepare the documents reflecting your specific direction.

3. Document preparation

   I draft the note, deed of trust, and (if applicable) related documents within a few business days. I'll send drafts for you to review before signing.

4. Signing and notarization

   Borrower signs at my office (or, in some cases, I can arrange remote notarization). Notary services are included.

5. Recording

   I file the deed of trust with the County Recorder. You receive copies for your file.

6. Reconveyance when the loan is paid

   When the loan is paid in full, I prepare and record the reconveyance to clear the lien. Doesn't matter if that's six months or six years from now.

Common questions

Do I need an attorney to do a private real estate loan in California?

Usually not. Drafting standard loan documents — note, deed of trust, reconveyance — is exactly the kind of work California Business and Professions Code §6400 authorizes Legal Document Assistants to do. You only need an attorney if the loan involves contested terms, multiple jurisdictions, complex business structures, or potential litigation. For most private real estate loans between individuals, an LDA can handle it for a fraction of attorney rates.

What about state usury limits?

California has usury laws that limit the interest rate on most private loans (generally 10% per year for loans used for personal, family, or household purposes; higher caps for loans secured by real property and made or arranged by a licensed broker). Setting your loan rate in compliance with California usury law is something you need to verify based on your specific situation — this is a question where if the rate is borderline, you should consult an attorney. I can prepare documents at any rate you direct, but I can't advise you on what rate to charge.

What if my borrower doesn't pay?

If your loan is properly secured with a recorded deed of trust, you have the right to foreclose on the property under California's non-judicial foreclosure process — typically a 4–6 month timeline from start to property sale. The mechanics of an actual foreclosure require a foreclosure trustee (often a title company or specialized firm); that's outside what an LDA prepares. But the documents we record give you that right and that protection.

Do you handle loans secured by real estate outside California?

I prepare documents for loans secured by California real estate. If you're lending against property in another state, you'll need to work with someone in that state who knows the local recording and foreclosure rules.

Can you draft a subordination agreement or partial reconveyance?

Yes — these come up when a property gets refinanced and the new lender wants priority over your existing lien (subordination), or when part of the secured property is being released (partial reconveyance). I prepare and record both. Pricing depends on complexity; I'll quote you a flat fee.