You definitely need a contract with expectations & benchmarks, as well as payments well outlined.

BTW, This model may not be for everyone and that is perfectly OK, so if you don’t like the outline above, don’t buy it.

Hi @Anthony CalecaDo you have a pitch deck or any kind of deck outlining the opportunity for external investors?

That being said, a Standard Purchase & Sale Agreement that outlines the terms of the agreement is all that you need for that part. 

In terms of documentation, you will want to have a formal agreement in place that outlines the terms of the loan, including the amount of money being lent, the interest rate, the repayment schedule, and any other relevant details.

However, for the reasons you outlined above, it's not a great investment.

Adrie Moses-bailey (now the name thing is working:) If you are purchasing this property with three other friends, and especially if it may be the first such endeavor for even just one of you, I hope that you will have a solid partnership agreement that outlines all expectations and possible contingencies.One contingency to consider is what would happen if the lender were to find out that you, as the original borrower, turned around and transferred title to an entity that involves something other than your own name.

There are valuable resources both on this platform in older forums and online that outline the fundamental pros and cons of smart locks for rental properties.I think the more important question before deciding which is best is to analyze how it would fit with the management strategy of the property.

The scenario you've outlined is best suited to hard money, since your lending needs are transitional, involve light rehab, and would benefit from building an interest reserve into the loan for at least a portion of the term, if not full term.

However, you cannot legally collect rent without the required licenses (as outline in your original post).