A referral like that carries more credibility than a pre-approval letter. 

We would split the cashflow and equity.

But hard for investors to control what they invest and how long can we get the money back so I won't invest more money with them. 

I have posted my closings, my personal life ( piano, dogs, etc), and reviews that I have.

This seems a bit risky and too complicated, in my opinion.

If you did not and it’s unsecured debt you could be out of luck on some or all of the money as depending on his situation unsecured creditors in a bk may receive pennies on the dollar depending on what he can afford and if converted to a ch 7 you would get wiped out.Even in 2nd position he could argue the property is underwater and wipe out your lien.

Great information

I never did one, but it is about time to try and see how it goes.

what more specific questions do you have? 

I certainly endorse it and implement it for my clients.