I'm pondering making private loans for flipping

[Mel Park]

I continue to want to do flips of my own, but finding investor friendly agents has been a bit challenging for me, and based on what I've learned over the months, I should be making triple the number of offers I've been making.  Anyhow I've not given up but in the meantime.....

At BP Con days ago - I briefly met a young man who was doing well with Flipping. I'm not perfect - but in my previous life I built 3 companies - highly competitive industry where I had 40+ full time employees, and health with a plethora of people with my point being, after 20+ years of that I'm usually good at sizing up people. Anyhow, within a few minutes listening to this fellow talk to his buddy, I knew he was legit, focused, sober, straight up so I joined the convo and told him that liquidity is no problem for me, it's just been a challenge getting the right agent, and other apparatus for flipping. He told me I should consider lending......that his private lenders do ok vis a vis ROI. I am interested. I should've had a sidebar with him but I figured to just marinade on it a bit.

Right now I'm taking 5.5% on short term treasuries but I think the risk premium is worth it for this.  Cursory research tells me the following:

*Get an attorney in the state I'd be lending in. Make sure the promissory note, deed of trust, etc truly protects me and the I have first position on the house.   HOPEFULLY - after the first deal, it's more of a cookie cutter thing and not huge legal expense on me.

Also, I'm wondering how to make it easy, smooth, and profitable for both me - AND the flipper.  The fellow I met suggested he's paying 10%.  OK, fine.     I'm curious if people here can advise me - -- is there a duration minimum?    My concern is.....if I lend $200k, for 10%-11%, great. BUT if the money is returned to me quickly --- heck the interest income barely covers the legal bill. 

I want to do some homework before approaching this flipper, or any others.  He seemed to value relationships, just like me. He seemed to like ease of doing business, just like me. Hence I want to have my thoughts in order.

*For private loans to a REPUTABLE Flipper:  Is 10% appropriate, or more? 

*Is it customary for the lender (me) to say -- look, I need some ROI so there's 6 month minimum duration on the loan, OR......in addition to the APR I'm charging, I should charge a reasonable origination fee.

I'd appreciate any comments or opinions . Suggestions and even insults are ok. 

Thanks!