How do I approach potential private money lenders?

[Justin Morris]

I've been doing lease options for the past year and now I want to get into rehabbing. I have drawn up a business place and am in the process of creating an private money investment proposal. I am going to send this out to family and friends that I think would be interested in becoming a PML. How do I present this to them? My plan is to use 100% PM to purchase, rehab and flip properties in the first year and then use 50% cash reserves and 50% PML after that. I was thinking of offer 12% interest rate with a 2% origination fee and no more then a 12 month note. I was going to compare this investment with others and point out the fact that you will in find returns like this any where else. Also, make a point that the money would be protected and always handled through a self directed IRA from Trust ETC. What else should I say in my proposal? My business plan already outlines everything they need to know about how I will do business and my goals.