Friend investing cash on a deal

[Abigail Pusey]

My friend wants to invest 10k cash on a real estate transaction. I don’t have a specific deal yet but want to know what kind of protection we should put into place. Should we both construct and sign a contract stating the terms and conditions of the loan and any ramifications/penalties for not paying back?

Is there something like this already floating around out there? I’ve never ventured in this realm and despite trusting one another, we want to protect ourselves financially.

Thanks in advance!