First time with a private investor - legal and other advice?

[Dan K.]

Hi BP'ers - 

Do any veterans have advice for a fellow BP'er who is approaching/working with private investors for the first time?  

Over the last 1.5 years I've purchased nine rental properties (mostly through hard money loans) and completed one flip.   Now that friends/colleagues have heard about the real estate work that I'm doing, some are starting to approach me and ask how they could get involved - exciting! 

I'd like to try working with a colleague this month on a smaller deal (I have a pretty safe single family rental that I'd like to finance, rehab, rent, and refi)  and see if they are interested in lending on some of my rehab projects (and then refinancing to pay off their investment).

Do any BP experts have advice on how to approach those first few deals? Any suggestions on the nuts and bolts (contracts, how you structured deal, what % rate of return you offered) and how you managed the relationship to help the investor feel comfortable?

Thanks in advance for any thoughts or suggestions.

Dan