How to invest with family and friends money?

[Alexander Ball]

Hi, I bought my first house hack at the end of last year.  I will be acquiring at least one more (maybe two properties) this year.  After I have a couple of more deals under my belt, I would like to start working with family to purchase more properties.  At first, I would take small amounts to mitigate risk for everyone and ideally later scale up from there.  My family make good money and I would make it very clear 1. My entire financial position 2. Risks of investing and 3. Of course the returns.

I cannot seem to find a straight forward guide on how to do this anywhere, but maybe someone can help point me in the right direction.  What I want to do is the following:

1. Buy residential

2. Have a partner lend me money for the down payment and closing costs, I pay them a fixed rate of 8%+ for the amount they lend me.

3. They are only lending me money, they're not a part owner of the deal.  I pay them 8% whether the property does very well or terrible

Questions I have

1. Will banks still lend me money if a partner is supplying the down payment?

2. How can I structure the loan they give me? Can it be as simple as 8% until they call it due?

3. How much work does it take a Lawyer to set up the following agreement?

Thanks