Bringing in a Private Lender

[Chad Schmidt]

Hello all! 

I’m in a situation where I’m looking to build storage units on a piece of land I’m purchasing but have a couple of questions about moving forward on the build. I have a private party (parents) that would like to pay cash for the project and work out a deal that benefits us both. 

My questions are: Is there a way to draft a partnership without creating a new LLC/partnership? They're not looking to charge me any interest on the money they simply want to put their money to work in order to have some monthly income while they enjoy retirement.

What would you do? Have a mortgage drafted without any interest? Do I suck it up and have a partnership agreement drafted? Ideally I’d like to solely own it and be responsible for writing them a check monthly for their profit. Thoughts? Thank you!