borrowing from family

[Carlton B.]

I'm interested in involving a couple of family members as investors in my next fip. I think the best way will be to borrow the money and pay them interest monthly like a hard money loan. So, they put 100,000 in at 10% paying them 1000 monthly. To accomplish this, we start an LLC with the lenders and myself. This seems pretty straight forward or did I get that wrong. Some question I have is banking do we open a bank account under the LLC deposit money there then purchase and rehab from that account? Who signs paper work to controls the bank account and mortgage. How do I disperse funds to lenders? Do lenders get 1099's? Is the tax burden split evenly? It would be great if there was a step by step. - Thanks