Structuring Investor Funded Deals

[Kellen Driscoll]

Hey BP,

I am curious how other investors are structuring their deals with private money lenders in regards to multifamily apartment buildings. Do you give a flat interest rate on the money lended to you? If so, what is a typical interest rate you give? 

Do you give up a portion of equity and cashflow? If so, what portions make sense? 

What terms are you typically offering and how does the money flow back to your private investors?

I realize every deal is a little different, but I am just looking for some solid advice from individuals that have experience with this already. My situation is that I have 3 or 4 friends that want to invest with me, and with their money combined I am looking to purchase an apartment complex. I am unsure however on what terms to offer them in return for their money.

Thank you!