How to borrow money from friend wanting to invest
I have come across a very good deal and am digging deep to come up with the cash to make it happen. I have a friend who has the cash and is considering linvesting in my project. The plan being to purchase the house using his cash, myself financeing the rehab and then a cash out refi once the property is complete. To be on the safe side I am estimating 6 months to completion so he would be investing for a 6 month term. After I was compete I would then refinance to pay him back with intrest.
First question is what's a fair intrest rate for him?
Second question, how do we make it legal so that his money is secured by the property and that I owe it to him?