How do you structure your private lender contracts???
Good Morning,
My company has a couple potential private lenders who are interested in lending to us for the purchase of a distressed residential property. My company will serve as the Gc over the project once complete, we will sell the property retail. We've been doing this for a few yrs but all for out of state investors with no shot at equity. Although these people are my family or a close acquaintance so for our peace of mind and legal reasons of course I want to have an operating agreement of some sort in place...
I've worked consistently with an uncle of mine who trusted me enough to do two deals and we just did business with a handshake, he got is original investment as well as the return we discussed... I know that I'd go to hell and back to repay my investors but in business its naive to just give a good word because someone knows you...
Anyhow any words of advice on drafting an operating agreement or an attorney reccomendation would be greatly appreciated! Also one lender is borrowing from his retirement if this adds a level of complication to this please advise.