How to structure Private Money Deal

[Ben Pohle]

I'm trying to understand how to structure my first deal to pay for a rehab (1st attempt at BRRR) after I secure a property.

I’m planning on using private money to fund the rehab and then pay the lender back with the proceeds after I cash out refi. 

1- what ballpark interest should I expect to pay for the rehab fund?

2- how is the private lender protected if the deal goes south? 

3- does it make sense to set up the contract as 12 months to repay where the lender will just get the cash flow from the property up to the 12th month, then get some sort of bonus interest if it takes longer? Ex: 5% extra interest per 6 months overdue

4- and if it really goes south, the lender would have a 1st lien and personal recourse?

Any insight would be awesome! Thank you BP!