Questions about being the lender on a secured loan..??

[Andrew Angell]

I'm researching some interesting private lending deals, and I'm a little unclear how this particular piece works.  I'm going to speak to an attorney, of course, but I'm trying to prepare myself a little bit even for that conversation.

I've got four similar deals I'm anazlying right now, but here's one example.

It's a development company building neighborhoods in the Southeast.  They are borrowing on a 3 month term at simple 10% with a $25k minimum.  So on $25k they'd pay back $27,500 in 3 months.  

We would have a promissory note and a quitclaim deed securing the loan with the properties they are developing, but that's where I'm a little unclear how that works.  What what would quitclaim deed have on it if they're still building these homes?  Land with nothing or unfinished homes on it?  

So if they were to miss a payment and I had to start the process of some sort of foreclosure, what would I be forcing them to sell?  The whole neighborhood?  Just one house?  

Anybody experienced with this sort of thing that could pass some tips to me?

Any information on this would be greatly appreciated.  Thanks!