Deed of Trust

Question: A friend wants to borrow 40K, I want to set it up as a per loan and take his land as collateral is this legal?

He is in TX, I'm in WA state, he is purchasing his land on a Deed of Trust, which I was going to buy the land and sell it back to him, so that I am not a third party. He has bad credit, good job, the 40K is to build a cabin on the land. I just want to be protected if he defaults. I am afraid of being in two different states and different real estate laws. But I want to be able to put a lien on the the homestead if he defaults so that I am assured to get my investment. And can I get a bank involved to help manage the personal loan?

Answer: Suggest u do not do this un less u have time money and energy to waste.
Univ of Hard Knocks.
people with bad credit as we are seeing are not people that need to go into debt unless u want to be a LONG distance landowner. do u?
if he wants it he can get 2 extra jobs , live cheap , save up and buy it when he get the money .
u may lose a friend but u will not lose the money.
u are looking at a can of snakes if u do this.

Investor Education Series - Secured Investments (Web).mp4