I need to find a good Real Estate attorney who can help me create an agreement to provide to my investors looking to lend my LLC capital for new land deals.
1 Like
When I hired an attorney to help me draft mine, it was the same guy I had hired for several previous jobs. You can actually get the agreement he drafted for me at the bottom of this blog post, if you need a good starting point.
You definitely want someone who specializes in real estate and has experience with investment structures, not just a general practice attorney. They should understand SEC regulations around raising capital too, since there are specific rules about soliciting investments.
Check with your state’s real estate investor association. Also, search for attorneys who are investors themselves - they tend to understand the business better.
Make sure whoever you hire can explain the pros/cons of different funding structures (debt vs equity, preferred returns, profit splits, etc). A good attorney will help protect you from accidentally creating securities issues.
What type of land deals are you pursuing? That might affect what kind of agreement works best.
Based on personal experience, Claude and ChatGPT can also provide excellent boilerplate language for initial drafts of relatively uncomplicated legal docs (of which I think basic lending docs fall under).
Just make sure to have the LLM ask clarifying q’s to ensure it builds the best boilerplate draft. Then you could have https://www.spellbook.legal/ review for any possible redlines, and then have an attorney review after. Will save hours of fees/costs.
1 Like
Thanks for sharing the resource @chrisduff. Never heard of Spellbook, but I love the idea. Will def check that one out!
1 Like