Help With Multi Family Purchase

[Jake Parks]

I want borrow $50k per person from my family and friends with a Interest rate of 10% annually (distributed quarterly or monthly) to purchase and rehab a deal, stabilize the property, and put debt on it from Fannie Mae. I would then pay them their $50k back thus owning the deal for either nothing or whatever amount I put in to get it done. My question - do I need to follow all the rules that come with the SEC/Syndication or if because it’s essentially a personal loan or hard money do I not have to?