Private Lenders- how to set up legally?

[Alexander Pezzutto]

I am considering using private lenders to invest in already owned property to pay off what is owed on a credit line used as the down payment. The credit line has about ten months before interest is charged and thus allows time for investors to pay into an already existing investment.

Should I meet with a lawyer and draw up terms of agreement for them to sign? Do I have to stay in regular contact with them? What if they want to withdraw their money?

Just want to see if my potential plan has problems or if they can be worked through. 

Thanks for your help :)

[Matt Motil]

I think I understand what you are trying to do. Best to negotiate terms with your investors with a letter of intent and then have a real estate attorney draft up the details to make it official. You said your investors are friends and family so it's even more important to make it legal and official. Friends and money doesn't mix well, and it's always best to have everything in writing so that Thanksgiving dinner doesn't get awkward.