Making our first hard money loan to a trusted workman - HOW?

[Karen F.]

We have a great workman who has been with us ever since we started, a decade ago.  Smart, self-motivated, trustworthy.  He wants to buy his first property.  We are willing to give him a hard money loan to do so.  We agree that the purchase price plus some money for supplies is only about 75% of the market value fixed up.  Besides, he intends to live in it for at least a year, and probably keep it as a rental property afterwards.  He is not going to get the house if he goes for a fixer up loan, I'm sure - his credit is not great, and it's easiest for him to get the property if he comes with cash.

We have no idea what current rates are for hard money loans for someone who has not got great credit, has no record of flips, owns no property.  We have a good local real estate attorney who I'm sure can write up the offer and the deal and do the closing, including the lien on the property for the hard money loan.  I'm not at all worried about this not working out - this is a steady, dependable guy, with no bad habits, who has great fixer up skills.  

What would be current hard money rates, terms, and points in this situation?  We'd then knock it down a little for him, but I want to know what he could get on the hard money market, if he could at all.  Hopefully, he'd get it done quickly and refinance into a better rate in a year or two.