Private money lending advice

[Paul Altman]

Hi

I am considering loaning money in a situation where I would be getting 35-40% of the profit and also a preferred interest rate on my money. This would more so be a partner situation so not lending to strictly a borrower.

I would be funding the entire project which would come out to around $175k - $200k including purchase and repairs.

I have never lent private money before and would appreciate some advice from some of you guys out there with experience in this area.

Just want a quick explanation of the basic steps i should take in this process.

Ex.

1 Contracts/documentation to make sure is in place

2 How to be prepared legally

3 Best ways to make sure investment is protected

4 Making sure no one can run away with the money.

5 How ownership of property should be held

6 Dos donts etc

I have heard that securing your money with your name on the deed of trust isnt always good bc of certain risks.

Any advice much appreciated.

Thanks