Structuring Private Money Lender/Investor Agreements

[Charles Patterson]

BiggerPockets, I am looking for your opinions and wondering what you do.

I am getting to the point where I will soon need to find Private Money to continue to fund my investments.  I am wondering what your standard offer is to investors and how you structure that agreement.

For an investor, I am looking at offering 7-8% yearly return + Equity share when sold or refinanced.
For a lender I would be looking at a negotiable Fixed Rate % APR over 15 years (possible 5 year balloon if they desired)

How do you structure your agreements?  If doing equity share, how do you determine what % to split?
What types of documentation do you have with the agreement?  Do you have some examples you can share with all of us?

Thanks in advance for any of the advice you have to offer.

[Michael Noto]

@Charles Patterson We do not currently have any private lenders who have an equity share with us, on our flips but we do have a couple private money guys who we give 7% interest on their money.

We had a local attorney here in CT write up a promissory note. It is pretty straightforward in terms of what is in the note, but in my opinion is something you want to have written up properly by a professional.