Family based lending

[Theodor Kim]

Hey all, so kind of a strange question, but:

What’s the best contract template to use to have a family member “trust loan” me money with an unknown return and returning their principle (and profits) in a set amount of years?

Context: I’ve been teaching my siblings how to do their finances and one of them was able to save a decent lump sum of cash. She knows near nothing about real estate and wants me to put it to work. She trusts me to throw it in a deal and eventually wants her principle back (I intend on giving her all the cashflow/profit to show her the power of real estate). She also trusts me without a contract but I also want her to sign one to teach her safe practice (and to have something that is written).

It isn't a significant enough of an amount of funds and not a long enough time to start a JV Partnership with a bank account opened so I rather do something with less cost and strings more like a Note or Advisor/Manager which I'll run in my businesses account. I know it's kinda legal stuff but if anyone has insight, I'd love to hear it!

[Lien Vuong]

I think you should just have a Promissory Note if your terms are that undefined. You can borrow $x until a certain duration and repay it back. Typically there is some collateral but it does not seem like there's much to leverage here so that should be sufficient for peace of mind.