Personal Money Loan from Family

[Jesse M Gutierrez]

Hello, everyone. I have a family member willing to loan me a small sum (30k) to put toward my real estate start-up. Short background...I purchased my first home approximately 1 year ago utilizing a VA loan with the intent of renovating during my owner-occupied time in order to step into an additional property this year so that when I leave/PCS (i'm active duty military), i'd have at least 2 properties providing a passive income. I can provide specific numbers later if relevant.

The lender has asked me to set up an LLC so that the funding is done from one LLC to another. I've read a-lot about them but wanted to gather more information from persons with experience and/or more expertise.

o Are there any major concerns or red flags that i should concern myself with or is this pretty common?

o Should i ask about or ensure any specific details/arrangements with the lender?

o Is it a simple term loan agreement with the funding utilized at my own discretion as long as the payments are made to the lender?

o What else should i be asking/looking out for?

Thanks in advance for any and all help.

-Jesse