What should my concerns be engaging in a private mortgage as the lender?

Question

I have eleven thousand invested in a property that comps @ $25000. I have a buyer @ $25000 that wants me to hold the mortgage. What should my concerns be??? Twenty percent down @ 7% interest over ten years ore the terms.

Answer 1

your biggest concern should be not getting repaid. have you done a credit check on the buyer? will you be filing mortgage papers with your local gov't office? your contract/mortgage should be drawn up by an attorney to ensure you are protected as much as you can be.

Answer 2

Yes, the first concern is will you be paid. Also, almost as important is, will they tear up the place, destroy it's value and walk away.