Need Help with Private Lending

[Wilson Bunton]

Hello all,

I have found a property that I would like to purchase, the house has a purchase price of $100,000.  The house is a homepath house and because of the condition the property is in Fannie Mae is only accepting cash or 203k offers.  Since I plan to do the rehab work myself or at least perform as my own general contractor, I do not want to do a 203k loan and want to purchase the house cash.  Seeing as I do not have that amount of cash on hand I am going to get money from a private lender.

My lender is willing to lend me 80% ($80,000) at 7% interest amortized over 30 years.  My question is how do I structure all of this to protect the lender and myself the most.  I understand that I need to draft a note and a mortgage.  Once those are drafted do I just take them to the county recorder and have them filed there?  If it makes a difference the house is located in Toledo, Ohio.

Thanks for any advice you may have.