9% interest as a private leander

[Kyle Kufeldt]

I'm a new real estate investor and have been spending some time over the last few months to learn and build up my network. I met an investor in my local REI club that needs some additional private funds to grow his business. Right now, he is only looking for an additional 50k which would seem to be a perfect starting off point. My question is around the terms he is offering an wondering if there is anything else I should be asking for.

50k, 9% interest amoritized over 15 years with a ballon payment due in 5 years. The loan would be secured by a property that he plans to buy, rehabbing and holding.

Does this sound like a good opportunity? Should I also be asking for any points up front? I was also thinking of reducing the balloon payment to 3 years so I can get out quicker if I decide I need the money for my own business. In doing my due diligence on this type of loan, I'm assuming I would treat this as if I were the bank and ask for the paperwork to see his track record and assumptions on the investment opportunity?

Regards,

Kyle