New to private $$ lending and asked to fund a project. Looking for help...

[Nick P.]

Hello all,

I've been asked by a colleague if I had any interest in being a private $$ lender for a home flip in the Chicagoland area. 

I have no experience in this and I'm not even sure where to start to know how the process works, what terms to offer, things to look out for, ect... 

Can anyone recommend any resources that I can use to educate myself on this subject?

The project...

- A1344 sq ft 4 bed, 2 bath home in a "well to do" suburb of Chicago. List price is 289K, ARV 390K

- Buyer needs 84K loan for rehab.  The terms he presented: A 12 month note at 10% annualized interest. Realistically, it would take 4-6 months to flip and sell the house, and when they do, they would have the option to pay back the principal and accumulated interest of the loan. 

Any recommendations are appreciated. I'm looking to educate myself on this subject first and foremost. 

Thanks in advance