Private vs hard loan vs investors ...

[Nhi Nguyen]

I've been using 2 sources of money: hard money & private loans from friends & families.

For hard money, it used to be 12% without any point.  After a number of deals, one of the lenders reduced to 10% for me, funding up to 75% of the purchased price.

For private loans, closed friends let me use the money for 5-7%.  Families 0-5%, but limited amount.  

I'm planning to open up investor opportunities for people I know in my community.  Please advice on how you structure your financial arrangements with your investors, specifically in: terms, promises, paper work, etc...

Thank you.