I get the concept.  I lend them money and create a note that is secured to the real estate.

The money is for repairs on the RE property itself.  (homeowner has broken roof).

Where do I start with the evaluation of whether the home owner is worth lending to?

How do I find a licensed mortgage originator to write the note correctly?  (My searches just find mortgage *brokers* when I search)

Do I even need a licensed mortgage originator for a 2nd?

I'm happy to search on any key words or call around if I only knew what to search on.

Thanks!!

@Daniel Burbol I hope I understand your question. I am reading that you want to lend money to RE investors. I can give you my point of view which is from the borrower. I borrow money from private lenders in my market every month. I borrow from friends, family, past clients who live out of state and sometimes out of the country. The notes and mortgages are easy to prepare once you get a template from your attorney. Plus you should get the borrower to sign a personal guarantee just like a commercial lender would get signed.  To answer your question its not only difficult to fund the right project but more important is finding a good borrower. You can have the most iron clad mortgage and personal guarantee but if you are lending to an investor who is not qualified or financially stable then you are rolling the dice.  If you want samples of the editable word docs I use please send me a PM. 

A local real estate attorney can draft you a note and a security instrument (deed of trust, etc) for this lending arrangement.

It would be good to have a loan servicing company handle calculating/collecting payment for a small fee (like how property management companies manage your rentals for a small fee).

@Daniel Burbol No. You do not need to be a mortgage lender in order to create a second lien position on a property that you own. If someone wants to borrow money from you, and you want them to use the equity in their home as collateral, then I agree, you can have an attorney draft up the documents and the person who owns the home can sign a deed of trust putting you into a second position on home they own. I would encourage you to work with the title company to make sure that there are no other leins in second position.

@Shiloh Lundahl   @Max Gradowitz   Hey guys you ABSOLUTELY in the state of Nevada need a license to lend money on either non owner or owner occ properties..   you need NMLS registration and you need state license.. I know i got a nasty gram from the state when i proposed to do just one loan for someone.. 

and its next to impossible to find a guy like me NMLS licensed and state licensed to write these small loans for others.. simply no money in it..not worth the time.

when most RMLO s can work on a regular bigger loan and make 5 to 15k fee.. 

Shiloh your self funding sell your own note as i have stated is not something to be talking about its not a note that should be taken to the public its a highly risky self serving transaction that anyone in the note business would understand and not get within 50 yards of .

@Jay Hinrichs I was not aware of that in Nevada. Thanks for correcting that,

Rereading OP's post, I would suggest running this arrangement through a loan servicing company that has a licensed mortgage broker experienced with hard money.  Nothing I'm aware of bars attorneys from drafting, reviewing, and advising on promissory notes, but loans used for household purposes typically now require it to be finalized through a licensed broker with specific disclosures.