I Found Private Lenders.. Now What?

[Victor Steffen]

Hello BP,

As the title suggests- I have 2 individuals each willing to invest 50k into a multi-family unit (asking price 450k). My plan is to purchase the property using the investors' funds for the down payment and my own capital to cover the balance if need be (I have around 20k liquid). This is on a hand shake basis.. So I have the deal, I have people who have SAID they are willing to provide capital... Now what? Do I ask them to deposit the funds into an escrow account? Are there legal ramifications I should be cognizant of?  We have discussed an agreeable rate of return and equity position- these terms need to be put into writing correct? Should I just type up a document on Word and have the partners sign it? I feel like the "big" components are in place- but I'm having trouble tying up loose ends. Looking for some guidance to bring this thing home.

Thanks All!