Promissory Notes- Is this the way to go?

[Account Closed]

Hello BP! I am excited to announce that I am embarking on my first real estate deal (wether it goes thru or not is another thing). My contribution to this deal is to provide the financing for the rehab. My initial discussion with the individual with whom I am working with is to secure my investment with a promissory note. Is this the way to go or is there something better?  Also is there anything that I need to know if I do go thru with a promissory note? Thank you all in advance and I look forward to your responses. 

Best,

Jorge

[J Scott]

Yup, as Roy said above, a promissory note alone doesn't help you if the borrower defaults.  You want a FIRST POSITION lien on the property as well, secured by a mortgage or deed of trust (whatever is appropriate for you state).  And you want to ensure that the property that is securing the loan is worth more than whatever the loan amount is, so that if you have to foreclose, you have a chance of being made whole.