How to do due diligence with private lending offer
I had an opportunity come my way with a couple fellow real estate investors are refinancing a short term rental property and the appraisal came in a bit low and they are looking for gap funding and are offering 15% interest amortized over 18 months with a 3 month extension option. This would obviously be in 2nd position to the refi lender. I've never done private lending, but know lots of people do so looking for advice on how to do due diligence and protect yourself, especially since it's in 2nd position. What documentation would you ask for? Do the terms seem fair? Do you get some type of insurance on the note? Who pays for the attorney fees to draw up the note or any other ancillary fees?
Really looking for any advice from those are have experience in this realm.