Nuts and bolts of private money lending help!
I am preparing to raise capital and I would like help understanding how to go about structuring and writing the terms of the funds.
MY IDEA
I want a $100,000 interest-only loan. I would invest this into a BRRRR. Then I can keep recycling this money into one BRRRR after another. I would pay interest monthly and then in 5 years pay back the full $100,000.
MY QUESTIONS
1. How do I actually structure this loan? Do I need to work with a lawyer to draw up some terms and both parties sign it? Can we just agree to terms, put the interest and the payment schedule in writing and then both sign it? Maybe notarize it?
2. Is this a usual set of terms or unusual?
3. Are there other things I need to be aware of as I pursue this loan?
4. Should they lend money to me or to the LLC?
Just looking for some brass tacks on how to actually executive private money loans.
Thanks!