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Updated about 9 years ago,
How to secure a $10k loan to someone in the middle of a remodel
I have someone that is nearly done with a remodel/flip and needs $10k to shore up loose ends, etc. They'll repay me $13k in 90 days. I don't know this person too well. I plan to have them pay for prelim title to see what is owed on the home. I know there is a primary on it. How do I secure the money I lend using the real estate in question as collateral (assuming it's a good LTV)? Put a second on it? A lien? Do I have the promissory note with a second mortgage recorded against the property?
Definitely new to this sort of thing. I'm a buy and hold type of guy but this opportunity came along so I figured I'd ask the question.
Thanks in advance,
Casey