Acquiring and putting together private money

[Manmath D.]

Approaching my friend to lend money on a deal. Couple weeks ago I started listening to BP money podcast. Very first podcast I listened to Mr money mustache. I liked his message and started reading his blog. Within 2 weeks I paid down my debt of $40k. With income coming in from my 2 properties, I've just a little bit of cash flow and no more housing expense. I bought a duplex 6 months ago, live in one unit and other is rented out. I also have one SFR in WV. Quite frankly I was looking forward to just living frugal and saving as much as possible from here on. I wasn't thinking of going out and finding a deal yet. I make $10k a month and don't have any debt. I'm saving 65% of my income. I also have $300k in retirement account that I plan to move into self directed IRA.

I'm still educating my self as much as possible everyday on RE business. So I get a text 2 nights ago from my agent that he just listed a REO property. I'll be putting down 70% of the listed price. I've a friend who has surplus money he's wanting to invest. He has mentioned before he would invest with me if I have a right deal. I've never done a flip before but I'll be working with a contractor who works for a very successful flipper in my area. My initial plan was to save for a year and approach this flipper with capital and see if she is interested to do a deal with me or invest in small(15-20 units) multi family. But now this deal shows up and I'm really interested in pursuing it. I may or may not get this deal since there are other investors looking at it too. But this got me thinking how do I have an access to private money within mins when I come across a deal.

Since I’ve never borrowed private money before, how do I approach him ? What are the things we need to put in place to start this process and structure a lending contract ? How do I put all this together?