Private money lender

[Armand P.]

Hello, 

I spoke to an investor/wholesaler who purchased a flip property in Texas sept of 2023 and didn’t have the funds at the time to get begin rehabbing. He is looking to borrow $50k with 10% interest. He already has the $50k with the hard money lender however they will only release funds once first phase of the project is completed. 

In order to secure my investment will a promissory note suffice or do I need a deed of trust or something as collateral in the event I don’t get my $ back? 

Is it normal to have private money funds get wired to individuals business or personal account since he already has possession of the property? 

Thank you 

Armand