How do you structure a loan note to flipper

[Franky Juwana]

Hi all, 

I've never done this process before so any input or suggestion would be appreciated. 

I was presented to these deals, I deleted the address just for privacy purposes but I spot checked in zillow, the estimate value of these houses are in the ballpark. 

So this what he emailed me, 

1)investor needs $52,000, for house ARV: 115k

346/mo (8%) 5 years or 10% for a year, Full due amount: 72,000, ROI:72% (I dont know where he got this 72% from)

2)he needs $62,000, ARV: 130,000, 415/mo (8%) or 10%, Full due amount: 86,000, ROI: 72% (again, I dont know where he got this 72% from)

at this moment, I assume I will be the 1st lean holder on the property, so if the loan defaults, I have the right to foreclose on the property. 

Here are my Questions about this note deal:

1. Are those a good deal? if not how would you revise it to be a good deal? in another word, how do you structure a good deal that protect me in the future. Anything I should be aware of?

2. If I agree to lend the money, could I open self direct IRA now on the fly and utilize self to fund this deal? due to yearly contribution is only $5500/individual & $11000/couple. And are the other options on saving from tax?

3. If investor and I reach agreement, what are the typical fees and costs to get this deal close? 

4. Should I do title search and BPO since the investor buying it and doing the flipping and rehab on the property? 

5. And if there's a lien on the house, who will be responsible ? the deed owner or me (lien holder) 

6. Lastly, what are the typical exit strategies (eg, short sale, foreclose, .) cuz it's NJ a judicial state, which sometimes could take a while in foreclose process, is this true?  

in my opinion, this is a decent deal if I structure it right, and one of the reason is ARV is way higher than how much I'm invest in, but I could be wrong, so your expert advise is appreciated. 

Thank you so much all!!