Private Lending from Family

[Dan M.]

Hey All,

Newer investor here from Phoenixville, PA (Philadelphia Suburb.) My partner and I have created an LLC and recently purchased 3 SFH (buy and hold.) We are hungry to buy more and both of us may have the option to borrow money from family. The potential lender(s) do not have experience with this process and it's newer to us as well. Does anyone out there have experience with this? Should a lawyer write up the terms? Do we put the lender(s) name on the lien? What can the lender expect when tax time comes around? We aren't looking for a free loan and want the deal to be beneficial for both parties. The loan would most likely be between 50-100k Any advice, guidance, or direction would be greatly appreciated!