Hard Money Loan - What if I'm not in first position?

[Gentry B.]

I was asked to do a hard money loan for $60k.  The borrower needs it for a bridge loan to finish a rehab.  There is already a $180k hard money loan in first position.  Is it wise to make that loan, and if so, how do I protect myself with collateral?

[Sean Blomquist]

@Gentry B. my biggest concern would be why they need another 60K to finish the project.  Too many unknowns to give you a good answer, but I would do a lot more digging into it before moving forward.

We wouldn't do a 2nd position loan, we would buy out the first position as well so we are the only one with a lien.  The numbers obviously have to make sense though.