How does private money work - how to structure it with a deal?

[Dolores Waldron]

Hi All,

I'm looking at a rehab / flip deal and after doing my calculations I can offer 375K for the property and the plan is to do it with private and hard money loan - the hard money lender requires 25% down so I would finance  $281,250 with the hard money lender and would like to find a private money lender for the $93,750.  I plan on rehabbing and selling the property and am giving myself 6 months to complete.   I have a private money lender in mind but not sure how I should structure this - I know there are plenty of creative ways to lay this out but just want to get the bare bones on how I structure this private money loan - can anyone share steps on how to do this?  What steps are involved, what legal documentation do I draw up...baby steps appreciated :)

Thanks for any advice !

Dolores