Private Money Deal Structure

[Felix Jaimes]

Hello all, 

I am in the process of purchasing my first buy and hold property that I will use as a rental. For this deal I have access to private money from family and friends. This will be the first time I use private money for a deal. I am unfamiliar as to the legal way or process to go about structuring the deal to the private lender as they have never done this either. 

Does anyone have a certain process or procedure that needs to be followed? What legal documents should be used? Also how does the lender secure his money if something was to go wrong? Any suggestion on how I could structure this deal to make it attractive for everyone involved so they continue to lend in the future?  The lenders are pretty much open to whatever I offer. 

Thanks in advance for your time.