Private lending - structure and terms

[Michael N.]

What terms should I expect, when using private lending? I am new to the real estate investing, and apologize if this is not clear. I am happy to elaborate as needed.

If I reach out to friends and family, to present an opportunity, what should I be offering, as far as the money? Is it a percentage of future cash flows, or just a simple percentage return on the amount borrowed. e.g. four friends combine to lend me $100k for a passive income investment. The property generates $1200/mo cash flow. Am I divvying up that cash flow, and handing it to my friends, or, do I pay them some amount after whatever the terms of the loan are?

Thank you.