Private "investor" funding

[Account Closed]

Having never done this before I'm looking for some input on what you guys think about a deal like this. I have a person who is willing to invest in my first real estate deal who is also a family member. We haven't settled on definitive terms yet, but this is what he is proposing. He would fund 90% of the purchase price at 10% interest and 10% of the profits when the property is sold, hopefully in less than 6 months. I would put down 10% and pay for all renovations. He wants to be listed as the additional loss payee on the insurance, which I don't I have a problem with as banks require that too. There is also another partner in on this who will be doing the majority of the work but doesn't have any funding in it. Does this sound like a fair deal for all of us? We have yet to determine how the profit will be split between me and the other partner but I just want an opinion on the financing part of it.

[Rolanda Eldridge]

@Account Closed ...I would not recommend doing anything with family UNLESS all paperwork/specifics spelled out clearly(attorney)...I tried the first year in business and it almost ruined the relationship...It was all verbal..When the flip/flopped, things got crazy!!!...I held the properties and paid initial investment back to settle issue....lesson learned...