First private money loan

[Nicholas Z.]

A friend recently offered to loan me the down payment money on a rental property in return for consistent interest-only payments over the course of the loan. It's the first time either of us has done a deal like this, so I did a bunch of research to figure out the right way to structure everything. I'm buying the property as-is, with no additional construction or rehab. I want to make sure my friend's money is protected as much as possible, and so far this is what I've learned:

1.The money should be loaned to my LLC and I'll add a personal guarantee to it
2. Money should be wired directly to the title company (I should not receive a check)
3. Add lien to the property in second position
4. Add the lender as named insured on the landlord insurance policy

Are there any other important things I'm missing here?

I will, of course, go through a real estate lawyer to formalize all of this, I just want to make sure I know what I'm talking about when we have that conversation.

Thanks!