Fund An Investor's Deal

[Eric Johnson]

A fellow investor presented a short-term investment opportunity to me.  She asked that I provide 100K to help with the acquisition of a fully occupied 4-plex for a period of 3-6 months.  Consequently, I'll receive 1.5% per month.  She is also putting up 20K of her own money.  Total acquisition cost is $400K.  Bank requires 30% down.  

My question:  If I'm not paid, what recourse do I have?  Considering the bank will be financing the deal, I will have a junior lien position in this deal, correct?  Therefore, I couldn't commence any foreclosure procedure could I?  Looking for some input on this.  I would like to do it, but I just want to know what recourse do I have being in a subordinate position.  Thanks in advance.