Secured Promissory Note

[Melissa Taylor]

I am looking at an opportunity here in California to be a lender to a known acquaintance who has a flipping track record.  I would use a Secured Promissory Note as the lending vehicle.  I would like to get information on how securing collateral via Deed of Trust actually works.  What specifically does the Borrower have to do? What paperwork, if any, accompanies the Note and is that paperwork exchanged at the signing of the Note?

Also, are there any legal protections that can be added to the Note that can protect the lender from third party claims, such as contractor or materialman claims of payment or perhaps injury?