2nd lien private money risky?

[Hanbin Y.]

Hello everyone, I was presented a couple of opportunities to invest as a private money lender. It's either new construction or fix&flip. The thing is, both put me as 2nd lien in the note. I heard that 2nd tend to be risky with more reward. But I have no experience in deals like this. What are things that I should watch out for? And what are some exit strategy if it's fix&flip? How active/passive is such investment?