Private Money Concern

[Derek T.]

I have a friend who has been offering to lend a small amount of money ($20k-$30k) for my rehab projects. I have been ignoring him because I am kind of scared of the unknown since currently I use HML and personal funds for financing. Well I finally set up a meeting with him and his wife for this weekend. What questions or dialogue should I be concerned about? I am going to talk to my lawyer as well but I figured I would get some free legal advice from the experienced rehabbers first.

Basically my plan is to show him some of my rehabs in progress, explain how the business works, how I would use his money, how it is protected, etc. My plans are to use his money in combination with HML to do another deal a two a quarter at a 12% interest rate. Since I am using HML they will have a 1st position lien on the property, so can I secure the $30k with just a personal guarantee? Also what else should I consider for this meeting.....documentation, potential questions, presentation material, etc? Thanks.