Logistics for first private money deal

[Ashley Russell]

We are doing our first private money deal so we can pay cash for a property up front, renovate and then apply for a conventional mortgage in our names and pay our investors back. The investors are family. How should we structure the repayment? What is the going interest rate for private money these days? If they are loaning us 200k for example and we agree on 6% interest for a 12 year loan, how do we amortise or do we pay all at the end? Do they simply wire the cash to us and we purchase the property in our names? Having only done mortgages before, I know we always have to show where we get funds from but for a cash deal there are no such rules correct? Should we do some kind of contract or legal doc since it’s family?