Master Loan Agreements

If you anticipate a series of loans to the same borrower, you need a way to save time while protecting your interests. Streamline your real estate transactions with master loan agreement services from Private Lender Law. 

Our experience in the private commercial lending industry allows us to expertly draft and negotiate master loan purchase agreements and participation agreements for purchasers and sellers, ensuring favorable terms that protect your unique interests.

What Is a Master Loan Agreement?

Repeatedly negotiating loan terms for real estate transactions from scratch is inefficient and can be costly — especially when dealing with the same borrower or parties. A master loan agreement (MLA) can set the stage for future loans and streamline multiple real estate transactions.

This legally binding agreement outlines the terms and conditions under which future loan transactions will occur. While an MLA offers an established framework, it can be tailored to fit the specific needs of each real estate lending situation, offering numerous benefits — such as:

  • Speeding up future real estate deals by avoiding the need to draft new agreements for each transaction.
  • Outlining consistent terms and conditions across multiple loans.
  • Protecting your interests and minimizing risk through clearly defined, precise terms and security provisions 

Use Cases for Master Loan Agreements in Private Real Estate Lending

When drafting and negotiating a master loan agreement, you need a law firm that understands the complexities and nuances of private real estate lending. Private Lender Law will tailor your master loan agreements to your unique needs.

We work with private lenders to ensure your MLA outlines the terms and conditions of the overall lending relationship in numerous scenarios, such as:

Fix-and-Flip Loans

With an MLA, there’s no need to negotiate a new loan agreement for each property.

Construction Loans

Developers building multiple homes or performing simultaneous renovations can access capital quickly as their project progresses.

Blanket Mortgage

Individual properties can be added to a single loan as they are acquired.

Real Estate Investment Trust (REIT) Financing

As new income-producing real estate is acquired, borrowers can draw on established MLA lending terms.

Drafting and Negotiating Agreements Used in Conjunction With MLAs

Master loan agreements are just one type of contract used in the context of real estate lending and finance. At Private Lender Law, we also specialize in purchase and participation loan agreements to ensure your loan transactions or sales are handled smoothly and efficiently.

Real Estate Note Purchase Agreement

If you are a lender looking to sell off individual real estate loans such as a mortgage or deed of trust, you need a contract that outlines the terms of the sale and ensures the transaction is transparent and legally compliant. Commonly used in real estate, a note purchase agreement (NPA) is a legally binding arrangement that facilitates the transfer of ownership for specific loans.

Our team can draft a note purchase agreement you can use to sell off individual real estate loans originating under your MLA and the associated mortgage.

Loan Participation Agreement

An MLA provides a solid foundation upon which the lead lender can quickly and easily sell off portions of a real estate loan to other participants. To do this, you also need a loan participation agreement (LPA). With Private Lender Law, we can draft an LPA contract that clearly defines the rights and responsibilities of each party, including profit-sharing arrangements and decision-making processes, maximizing capital and reducing risk.

Contact Us for Participation or Master Loan Purchase Agreement Services

Ensure your real estate loan contracts are clear, transparent and legally compliant with master loan agreement services from Private Lender Law. Whether you need assistance facilitating contract modifications or transferring ownership of loans, we streamline agreements for loan purchases. 

Reach out online or call 1-212-536-3529 to schedule a consultation with an experienced attorney well-versed in the private lending industry.