Advice on loaning to house flippers for renovation budget

[James Lapp]

Hello,

I am a potential hard money lender considering loaning to two individuals who are flipping a house.

Individual #1: Taking out traditional mortgage with 10% down to purchase property

Individual #2: Managing restoration and sale, taking share of profits

They need money for the restoration budget, estimated at $40K. Timeline is 4 months for restoration and 2 months to sell. I am considering lending them this amount but would like to secure the loan with collateral.

1. Should I register a lien on the house? The bank will have title, so this would essentially be a second mortgage on Individual #1's 10% equity in the home.

2. Can I register a lein on another piece of property (e.g. a car)?

3. This is an out-of-state deal (for me). What kind of person should I talk to get a legal document drawn, notarized, and a lien registered?

Most of the information I found online for private money lending is related to lending the full amount for the house/renovation. I am only lending for the renovation. Any advice or links to reading materials would be greatly appreciated.