Advice on how to best structure a loan deal in 2nd position
So I am stepping outside my comfort zone of landlord/flipper and making a loan to a fellow investor for the down payment on a flip house. I am planning on taking 2nd as he is getting a hard money loan who will be in first. The house I have looked at and would have no problem owning the home if something went south. The numbers are good there. The loan is for 30k.
I am wondering what is the more standard rate/points for this type of loan and if there are any caveats I need to be careful of. I assume my attorney will have to file the note, can that be done at closing are is that best done before? Any advise or pointers to info would be appreciated.