QUESTION: Loan from Family Member

[Mark D.]

Has anyone accepted a loan from a family member and then purchased real estate. I assume this is similar to a private/hard money type loan, but from a family member. We are in DD for a commercial property, looking for a mortgage from a bank but a family member said they may be willing to lend (at better rates/terms). Is there anything I need to know regarding this? Does IRS set limits or terms? Any law where the family member cannot lend to me below the current average rate/PRIME? What's the best contact for this- promissory note? Any taxes or gift tax that we need to be aware of?