Friend wants to lend us money to invest in our business idea

[Alex Kim]

Hello All,

My business partners and I are stuck in a situation we haven't been in before. My personal friend just inherited a large sum of money as well as a trust fund setup by his parents. The friend is willing to put up $50k initially for our fix-flip business plan  for proof of concept. What are the steps that my partners and I must do to use the funds for investing in fix-flip properties? 

My friend isn't looking for much of a return for their first investment, they will be happy if we break even or beat inflation with their money sitting in a bank account. 

Many thanks

[Charles Carillo]

@Alex Kim

Maybe have the friend become a lender to your investment group. Set the interest rate and fees and have an attorney setup the agreement and loan docs.