Private Money - Family/Friends
I have friends and family willing to invest in my real estate deals at an 8% APR, where they are not active partners. I will be getting a commercial DSCR loan. My question is what is the best way to go about this, do I do a promissory note between LLC/investor and is there any special type of insurance I should get to cover them? Also once my investors agree do I immediately have them put the money into an LLC or do I wait until I find the deal and then have them transfer funds to LLC for the downpayment. And will the lender want to see their financials as well?