Promissory Notes-Pros And Cons

[Carmen Cipolone]

If you lend someone money and they give you a promissory. It’s attached to real estate. Take for example: I give $100K to a builder/flipper and they give me a 12 month note at 10%, what things should I look out for that could lose the money?

It would be attached to real estate of course.

If they stop making payments, how many months until you can call the note due and start the foreclosure process? Can you start a foreclosure if they don’t pay. Just looking for advice in case it goes bad. What pros and cons do you see in doing notes? TIA!!!