Got a loan opportunity..

[Tyler McKendry]

Someone I know and trust is looking for a 50k loan for 7-10 months. I've only done this once before and it was unrelated to RE. I'm a bit curious what you guys think about the deal, and if there is a solution to a problem I have..

Background: He's a partner on RE severance project. He's been involved in 2-3 of these deals and his partner has done several over the last few years. He needs to cover his end of the costs for a project.

Offer: The offer is a $50k loan. principle + $10k on completion of the project, which is estimated at 7-10months. Additional 2% every month it goes past+min payments. He's also offering a lean on the property (which I assume is free-and-clear, but may be worth <50k in severed+disaster scenario).

Risks:
Trustworthy guy, disciplined, and ambitious. He has a reasonable TDSR. Good credit. He has a fulltime job. I think he makes ~$70k on salary.

I'm unfamiliar with project related risks. Obviously not every deal is a slam dunk. I can cover myself somewhat here by getting the loan secured on the property.

The deal seems alright.

Problem: The 50k cuts into my working capital for the year. $20k-30k is okay for me.

I'm excited about doing a deal, and this one seems promising. I'm brainstorming solutions here.
Is there a way to sell part/all of a loan?
Can I secure my own loan on a loan contract? (Is this advisable?)
Overall thoughts on this deal?