Security for Secondary Lender on Purchase Money Mortgage

[Brandon Sturgill]

I would like to secure small scale loans for acquiring properties through a purchase money mortgage, but don't have the understanding on how to provide security to an investor...

For example:

Duplex purchased: $100,000

Investor funded: $25,000 ($15k down/ $10k repairs and holding costs)

Seller Carry: $75k

I would offer 10% on a short-term note (2-3 yrs.) with interest only payments and principal due at maturity. The problem is that the $25k loan is basically unsecured...how could I structure the deal to make the investor comfortable?...(assuming the exit to cover the balloon on the purchase money and investor loan is to re-fi and place long term financing)