Private money investors
I have recently started taking actual action in my investing and found a great deal after educating myself on real estate investing over the last year and some change. I started with a set plan and simply didn't expect to find as many capital resources as I have. After securing my new property and talking to people about it I've had two people pull me aside and ask how they could invest. I tried pointing them in the same direction as I was in but they both said they would rather be a private money invested to me even though I said I would show/give them all the resources that I've found thus far. They both said they want to put in a minimum of 5k, but one said he is really looking to invest around 20k. I'm nervous about this because he is a co worker. I've since gone back and read the private money financing section in my books and have watched a few seminars online but I'm still a dear in the head lights. Should I give them a more favorable APR to start with? Should I pay their interest monthly? Should I set up a few different packets on how I will accept private money financing? Another issue I see is I've only just started and have no business structure currently implemented, (though it is thought out). Should I set the up before I take on an invested? I assume I need to use different bank accounts correct? I'm nervous and I know this means I'm on the right path, I love the feeling but I don't like to misstep. Advice is more than welcome because this is not a rant but rather a call to the more experienced to tell me what mistakes to avoid. Thank you to all who have read this and replied, your kindness keeps me here on BP.