private money lending structure

[Daniel Elbe]

I'm looking to close on a wholesale property out of state with a private money lender. He has ample cash not earning much appreciation, so the opportunity to fund a buy and hold investment is appealing to him. He has no experience as a RE lender, but is interested in the deal. This would also be my first deal with a non traditional loan.  My first instinct is to structure similar to a hard money deal, refinance and pay him back quickly.  The home will cash flow well, hitting beyond the 2% rule. My biggest interest right now is to structure the deal to make him money and encourage future investment. 

Does anyone have experience structuring deals like this that doesn't mind sharing some wisdom or experience? What outside resources do I need to have ready to close quickly? Lawyer? Title company? 

Thanks, sorry for the long post!

[Dawn Anastasi]

Create a promissory note with the attorney's help.  Then also create a mortgage.  Have the friend transfer the money to the escrow at the title company just before closing. Then at closing the title company will have you sign and notarize the promissory note and the mortgage gets recorded on the property.  The mortgage acts as a lien such that if you default on your obligation, the private lender can take the house.