I'm lending a long time friend money on a house that we are going to flip. I've flipped in the past but not lately. I've flipped and I own a few properties, but I've never lent money. Its not going to be a ton of money, 10k so far, $20k max id say. The property has already been acquired (not in my name) and was taken with the existing first mortgage. Its in PA. My question is do I make a second mortgage and file it or what forms would I use ? And I'd also like a POA on the property in case something happens to my friend and his family takes over. Hes single but does have a minor child. He lives a wild life at times and if something happens to him, I want to be covered. Our deal is I get back whatever I put in and we'll do a 60/40 split on the profits. Its his find so I agreed to 40.
Any help would be appreciated ! Thank you !
My point is, any terms you agree on can be put into a note and mortgage.