First-Time Private Lender - Critique my deal??

[Matt Sauls]

Hello BP! I wanted to get some feedback on how you'd handle the following situation as the Private Lender lending your own cash or IRA funds. Here are some facts about the deal:

Purchase Price + Buyer Paid CC: $170,000

Repairs: $30,000

ARV: $250,000 or 80.0%

Loan to Borrower: $200,000

Promissory Note: 10% - 60 Day Minimum Guarantee

Lien Position: 1st Position

Personal Guarantee: Yes

References: Checked out, with strong history of success

Comps:  Spot on for the ARV target and homes are generally selling in 15 days or less priced on target.

Advice from the community for a first time lender?  I'm particularly interested in the following:

1) Due to high ARV, more risk. Should I charge a higher rate or ask for a minimum guarantee amount (ie $4,000 even if completes in 60 days or less).

2) What do you want to make sure is in the promissory note?

3) Flipper is asking for the purchase price to be funded through escrow but repair funds to be paid directly in multiple draws.  Any issues here?

Really appreciate everyone's thoughts and experience.  Let me know what I've missed.

[Roman M.]

Forget about the rate.

If you fund over the purchase price why would the borrower want to complete this deal. They need  to have their own money in the deal all the time. At least 20% but I won't touch anything for less then 30% in the deal. 

If they don't have that then  forget about the rate. I don't print my money like the bank or a money fund. 

Return of the capital is more important then return on the capital is a golden rule for me.