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Updated over 6 years ago on . Most recent reply
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Securing a Promissory Note
I am finalizing a deal with my cousin who is an experienced investor and professional property manager/real estate broker. She has acquired a fix and flip property recently in WV where she lives and works. I am looking to use $100k of my primary residence's HELOC to invest (of a total of $130k capital she has raised for this deal). I have invested with her before ($10k and $5k on previous promissory notes) and she has delivered as promised. I have a great relationship with her that extends beyond business. Being that this is a large chunk of my home's equity, I want to ensure that we have some protection in the transaction. I have asked her for such and she has delivered me a Line of Credit Deed of Trust document. The property is being held by one of her LLCs. Is this sufficient security for my investment? Thanks for your advice!