Brrrr with family/friends money

[Sawyer Kelly]

I have an off market deal lined up, I'm comfortable with the numbers, and it'll be a good opportunity to gain experience. Looking to Brrrr the property and hold it long term.

Type: 2 Bed 1 Bath single family home with 1400 square feet. Basement has potential to be finished. House is in good shape in a nice area. 

Location: Indiana

My question pertains to gathering the funds from family and friends in order to make the cash buy. I have the group of people along with the amount they want to contribute as passive investors, but I'm trying to figure out how the money will change hands and how to structure the terms. I'm planning on doing promissory notes and taking out loans from them, but would like to know if there's any other way of pooling the money. I plan on cash out refinancing after the rehab is done and paying them back along with the interest accrued throughout that period.

Market value: $100k 

Purchase price: $75k

Renovations: $30k House doesn't need many repairs, but this is the estimated cost of finishing the basement and adding a bedroom and bathroom.

After repair value: $150k

Current rents per month: $1100

Income Source: W2 employee

FICO: Good