Employee approached me about doing a secured promissory note
I recently had one of my 1099 employees approach me about helping him deal with some back taxes that have come to a head and he is running out of options. He owes $60,000 to the IRS from 2004 taxes and he has asked me if I would do a secured promissory note with his house as collateral. His house is worth $180,000 and he only owes 8,000 on his mortgage. He would be willing to a 68,000 note (8k to wipe out mortgage and 60k for back taxes) @ 9% with a 36 month term. He has been with my company for 10 years and I'm not really worried about his ability to pay back the loan plus the LTV is sub 50% so I feel I'm safe on that end. Any other concerns I should be factoring in and would you do this deal? I have a large amount of cash sitting right now waiting for the right multifamily deal but this would require much less work on my part.