How to Create A Promissory Note

Create your own Promissory Note: https://retipster.com/go/rl-note/yt-J... (REtipster Affiliate Link)
Learn more about promissory notes: https://retipster.com/terms/promissor...

00:00 - Intro: What is a Promissory Note?
01:23 - Mortgage vs. Promissory Note - How are they different?
02:51 - Looking for a promissory note template? Check out RocketLawyer
03:52 - The process of setting up your promissory note with RocketLawyer
11:44 - Review the promissory note document generated by RocketLawyer
12:08 - How can you digitally sign the promissory note?
13:01 - The Loan Amortization Schedule
13:29 - Final words
14:35 - How to sign up with RocketLawyer: https://retipster.com/note

A Promissory Note is an important loan document typically executed between a Borrower and Lender when the initial loan proceeds change hands (in the case of a real estate transaction, this would be at the time of closing).

A Promissory Note is a legal agreement between the Borrower and Lender that lays out the specific terms of the loan. It should include all the basic details, such as:

- Loan Amount
- Date of the Loan (including the first payment date)
- Interest Rate
- Payment Amount
- Number & Frequency of Payments
- How the Loan will be Paid (e.g. – principal & interest, installments of interest-only with one lump sum on a specific date, or due on demand)
- How the Note will be secured (e.g. – by a Deed of Trust)
- Whether the Lender can sell or transfer the note to another party

Often, it makes sense to include an amortization schedule with the note to make it abundantly clear when each payment is due, the amount of each payment and what portions of each payment will be applied to principal vs. interest. This can help avoid any confusion between the borrower and lender about what is expected.

Once the document is signed by all the appropriate parties, it can act as a legal document that can be used in court if the lender ever needs to demand what they are owed from a defaulting borrower.

Note: I have had a great experience with Rocket Lawyer, but your experience may vary. The link above is an affiliate link, and at no additional cost to you, I will earn a commission if you decide to purchase this particular tool/service. I recommend this resource because it is helpful and useful, not because of the small commission I make if you decide to buy it. Please do not spend your money on this unless you feel it will help you achieve your goals. #rocketlawyer #realestate #retipster

Join Our Community!
REtipster Forum: https://retipster.com/forum
REtipster Facebook Group: https://retipster.com/facebookgroup

Follow Along!
YouTube: https://retipster.com/youtube
Facebook: https://retipster.com/facebook
Instagram: https://retipster.com/instagram
Twitter: https://retipster.com/twitter
Pinterest: https://retipster.com/pinterest
LinkedIn: https://retipster.com/linkedin
TikTok: https://retipster.com/tiktok