First Time Lending Hard Money

[Bruce Harding]

I have a real estate agent that I was going to ge in on converting a home into a senior assisted living facility.

Because I would be funding with my 401K Trust a Securities contract has to be drawn up.

Due to the time this property closes there won't be time to get an attorney to draw up this contract.

So I am going to do a loan to the agent on the property secured with a mortgage and lien.

My question is this a fair deal:   Loan Amount is $75K 

                                                        Term is 18 months

                                                        I am being offered 12% interest rate

I have never done one of these before so I am asking is this a fair deal for me or is interest usually more on this type of scenario ?