Private loan to partner

[Amy Butcher]

I loaned $40,000 to my partner for the rehab of a flip. (Actually, he's my life partner of 25 years) It is now three months after he bought it and is about to be listed for sale. Now I'm thinking I should have written a promissory note and a deed of trust so that when he gets paid from the sale, it does not all look like profit to him and he won't have to pay taxes on all of it just on the actual profit he made. I mean he'll get a check at closing for about $60,000 after the 1st loan is paid off but only $20,000 of that is actually profit.

So can I now do a note and deed and have it recorded? Do I have to go thru a title company? Or can I find the forms and write them myself?  I'm the one managing the whole thing so I personally know for a fact of all liens already on property.