Private Money (Friends / Family) - Can they lend to me?

[Nat Rojas]

Hi BP! I'm reaching out to a CPA and Attorney, but would like to poll the community as well.

I'm in the process of discussing terms  for lending from friends/family. If they want to lend me $5K, $10K, $15K, etc. and then I repay with interest, what do I need to be aware of?

If the relationship is such that a handshake will suffice, is that enough from a legal/tax perspective?

Does every amount of money need to be reported on a contract / in tax returns?

I'm a Buy and Hold investor and would like to leverage other peoples money (OPM). This could assist/work in tandem with Hard Money Loans, rehab expenses, purchasing cash, etc.

Any guidance, resources or contacts is greatly appreciated!