INVESTOR WITH INTEREST FROM A PRIVATE LENDER WANTING TO INVEST

[Galen Dawes]

I have a house I recently purchased that I am renovating to resale. I also have an individual that is wanting to invest 10k to help with renovations. What is the normal collateral on my end? I really don't have anything worth the loan amount other than the house, which is worth much more. An attorney that she wanted to have write the contract suggested a deed in lieu with a clear title search, and put the 10,000 in first position in a promissory note. As an investor that knows the area where the house is located and sold a couple within a mile recently, I am quite sure the property will sell quickly and there would be no issue replaying the loan in full and interest.