Question on using private investors money.

[Joshua Sanchez]

I was reading in blog post http://www.biggerpockets.com/renewsblog/2013/06/25/buy-a-house-with-2000-or-less/

In it it talked about using private money. I know people that have lots of money but do not have the time to invest or know what to invest in. I want to know how it works and what I mean is if i approach an investor and tell them that I invest in RE and am looking for funding and I will pay them x % return on their money. Would I be issuing them a promissory only or am i supposed to put them on the deed or what im lost on this. Also would it be for 1 year or 5 year or what is the standard length for these kinds of deals?

Thank you
Josh