Protecting My Cash

[Vincent Priore]

I was recently approached by an investor I know to make a short term cash investment to help him obtain a property. He's offering me a very aggressive rate for a 3-6 mos loan. The plan is, I will be on title as an owner (20%) and we'll have a buyout agreement in place prior to close. If the buyout goes beyond 6 months, the rate goes up. My question is: am I secured enough with 20% ownership or do I need more? First time as a lender and i want to be sure I'm covered. Thanks