private loan for percentage of value

[Jim Williams]

i have a friend who needs to borrow $10k and will give me a percentage of profits($25,000) from sale of piece of property, which should be in 4 months. i will have property as collateral.

we want to keep it as a loan, as opposed to buying into his partnership, so as to not bring about any taxable situations, but i am a little worried about usury laws.

i would love any ideas on the best way to do this to protect us both.\\jim williams

[Dave M.]

If your friend is borrowing money, you need to define the interest rate. If you are sharing in the profit, you are an equity partner so you can't "keep it as a loan"