Hello all.

I am starting to organize some hard money deals with my close friends and family. I have an LLC that I plan on purchasing the properties through, and then loaning money from the friends and family paying them out a return of 15% on there money in about 6 months time.

I am being asked by a few of them how the tax process works and I am not sure exactly how to answer that question? When I pay them out there originally investment and the additional 15%. How does that work from there end and how does it work from my end? Do I need to send them any forms? How will they be taxed, etc.

Any help from those of you out there doing deals like this would be greatly appreciated.👍