Being a hard money lender or investor?

[Steve S.]

I'm new to the flipping strategy and am aggressively learning. However, I know people who have a proven track record of successfully flipping.

I have accumulated several hundred grand which could be used to lend hard money or invest.

1. What would I need to do to invest this with a flipper to ensure my money was protected? While I may want to trust someone, I may not know them extremely well and wouldn't want to find they'd moved in the middle of the night :)

2. What are typical terms?

3. Should I create an LLC?