Private Money loan

[Henry Sims]

Hey, BP land, I have a quick question for you all. I have a friend who sold his mobile home park so he could retire. He wants to make a little more on his money than a CD will provide. I'm looking to scale my business and would like to borrow some of his money to do so. Not sure how I need to do so. We came up with a loan for 6-8 months while I remodel a house I have. He is good with receiving 10% on his money paid out when I sell the house. In this instance, I'll borrow $80,000 and pay back $88,000. What paperwork do we need to secure his loan against the house? Will a simple notarized agreement between my LLC and him work? How do I need to receive the money? Should we do a joint bank account with the funds? Any help will be greatly appreciated.

[Mike Grudzien]

And make sure that you have appropriate insurance on the property while under construction all the way to the point that it is sold.  If something were to happen, both you and your friend loses.