Have questions on raising funds from friends and family for multi

[Jorge Garifuna]

I've been investing in real estate since 2012 and have paid with my own cash for all my properties so far. All my properties are fully rented (with the exception of the last one which is being renovated).

Now I'm interested in a multi-family and would like to consider borrowing funds from friends and family to finance about 40% (about $35,000) of the property to be paid back to them within 12 months.

My personal credit is not in the greatest shape, so the banks (large and small) I've visited won't work with me. 

I find that hard money lenders charge a bit high (10%+) for what I'm willing to pay. 

Part of my reason for considering going to friends and family is because I don't want to pay any extra fees associated with borrowing money, although I wouldn't mind paying them a reasonable interest for the loan.

1) What is the best way to approach friends and family about borrowing money for real estate investment?

2) What is a reasonable interest to pay friends and family for their loan?

3) Do I propose the interest amount first or should I ask each individual what interest they would charge me for the loan?

4) Is it wise to offer one of my existing rental properties as collateral for the loan and if yes, how would I deal with multiple friends/family that contribute to the $35,000 in terms of distribution of the collateral?

5) If a friend and family agrees to lend me the money, where could I get the paperwork to start the process?

6) Some of these friends live in different states, where my bank does not have a presence for them to make the deposit directly. For those cases, what would be the cheapest way to transfer the funds into my account?

Thanks in advance for your responses.