Private lending question

[Jeanne Davis]

Lending $60K on buy and hold - Prop value $300 - $325K. 10% interest only $500/month X 6 years.Investor will chip away at prinicpal with balloon at end for balance.Will do promissory note, mortgage, and hold 2nd pos lien after $200k 1st pos. Local investor and property in my area. Investor known to me personally thru REIA groups. Thoughts? I normally lend on fix and flip so I haven't done a longer term like this.

[Jay Hinrichs]

Originally posted by @Jeanne Davis:

Lending $60K on buy and hold - Prop value $300 - $325K. 10% interest only $500/month X 6 years.Investor will chip away at prinicpal with balloon at end for balance.Will do promissory note, mortgage, and hold 2nd pos lien after $200k 1st pos. Local investor and property in my area. Investor known to me personally thru REIA groups. Thoughts? I normally lend on fix and flip so I haven't done a longer term like this.

you will lose money if this defaults..