My business is taking off. So many questions !

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My friend and I are starting a rental business to help us save up to start flipping houses. While we were at work a doctor overheard us talking and he said he would invest in us so we can start flipping houses now.

Questions:

- how do we go about collecting his money? Is there a legal way to go about it that protects us and him? I don’t want to just take a check. There has to be some way to go through a bank or something right?

- how much should we pay him? I have heard on the podcast to pay investors anywhere between %12-%20. Is that right? Do you pay them per flip? Or do we pay them that percentage at the end of the year?

- for our first flip should we find our own deal or go through a wholesaler?

- any tips on handling this situation professionally? This came un expected and now im trying to learn as much as I can. So any tips are helpful. I dont know what I dont know. So please, give any feedback

Here are some high level thoughts - to do this right, you should get state-specific legal advice. 

The first step is to reach agreement with the investor as to whether the investment is to be debt or equity. If debt, you need to execute a promissory note which will state the interest rate to be paid (something you negotiate with the investor). If equity, your best bet is to create an entity (usually an LLC) to register each party's equity interest in the venture. With one investor, you can probably get away with just entering into a joint venture agreement between the investor and you (or your group).

Google these terms and you will learn a lot.     

@Kyle Neville Hey congrats on the take off!  The answer from @Darius Ogloza was great but I had another suggestion as well.

Find a local attorney or a few and ask if they have experience with real estate work like this and partnerships. Spend a few hundred dollars(at most!) and get their professional legal take on the best way to do things for your situation and in your local jurisdiction. I find a one hour consult with a good attorney can answer so many questions. The minute money, partnerships, and structures come into play, I don't mess around with being wrong.

I totally agree with @Sean T.  When it comes to $, you can't mess around.  A sound legal contract is the only way to go or it will be a mess later on.  Think of it like a divorce - you fall in love with the person, but when it all falls apart, the ugly often comes out.