Working with Another Investor - How to Protect Myself

[Jay Miranda]

Hi BPers!

New investor in Anne Arundel County MD, looking to do a deal with another investor colleague of mine. He will buy the property cash and I would put up the rehab money.  We would then split the proceeds from the flip.  My question is how do I protect myself contractually or otherwise if things go south?  I am not on the title and I understand I could always put a mechanics lien on the property, but are there other safety measures I could put in place to limit my exposure?  Thanks in advance for your help!  

[Roy N.]

@Jay Miranda

If your partner in this venture will be purchasing the property in cash, you could lend the rehab money in exchange for a (1st position) mortgage (registered against title naturally).