It seems that the one thing that's making you reconsider is the appraisal, so, did you run any comps on your own before you put out a contract or did you base it on the original asking price of 160K?

Still, I've brokered many successful second liens for my beneficiaries on flip properties, and they've been very happy with the result.However, there are a number of issues with this particular deal, which should lead you to ultimately reconsider:$60,000 on a $700,000 purchase is in fact a very small estimate unless they are purchasing an REO or Short Sale and buying at a major discount already...so the $60K will end up being simple cosmetic stuff.  

Ironically, this should ensure that the rules are respected better than if we'd reported the post as anybody who wants to pitch a deal against the rules might reconsider after going through this thread.It seems that the promoting party (after talking to the developer?)

Give yourself some time and reconsider.

I appreciate the help @Jason Gines - should I wait until I am looking into my second property and then reconsider it?

If you are spending $60k/door, you might want to re-consider it. 

. - I think this is the episode that made me start reconsidering my purchase :)

I don't want to rain on your parade, but I think you should reconsider whether this really fits your cash flow priority.Good luck.Mike

John, I would suggest reconsidering your long term objectives (which really haven't been stated).

They will also understand usury, licensing, and origination in Wisconsin and should be able to evaluate your borrower, the deal, and you for suitability.Last, if this is a second position loan, I recommend you reconsider.