Lending money for use at auction -- how to protect interests?

[Larry Bowers]

I am in Missouri, and have been approached by an experienced investor / flipper to borrow money for one of his projects  that he will be at a foreclosure auction. My question has to deal with how to protect my interests. Now, I understand the concept of a deed of trust being recorded using the property as collateral. In the past, all my transactions, like buying my own house and other investment properties were handled at a title company (we don’t normally use attorneys for closings normally in MO) and the deed of trust was handled alongside it automatically. 

For these foreclosure auctions, the investor has to arrive with cash in hand and will not know necessarily which property he will buy. So…how do I protect my interests before handing my money over? I can't have a deed of trust recorded when I don't know which properties will be involved, and I need to be sure that if I hand cash over that a deed of trust will be recorded after the properties are bought at the auction.