How to structure and document the deal

[Joshua Feit]

Hi BP!

I'm working on a first flip, and I need to raise $35K in addition to my own cash to make it happen. I have a potential lender lined up, but now I need some help with the brass tacks of the relationship.

Snapshot of the deal:
Buy for $65K (already closed)
Sell for $240K
Rehab/holding costs: $130K
Estimated timeframe 3-4 months

Questions:

1) What percent return should I offer on the $35K? (Thinking somewhere around 8%?

2) Should I offer any 'points' -- 1? 2?

3) Monthly payments? or just a balloon payment on this project?

4) Most importantly: Do I need to get a RE lawyer to draft a contract? Or do I use a third party company of some sort to put that together? Or just a standard contract that I can find somewhere? (In other words, how do I keep all of this legal on paper?)

Thanks for the help!