Step by Step guide to raise capital from friends and family.

[Ziad Hamati]

Hello

I have a distressed property under contract and currently raising money from friends and family to fund the rehab.

Investors will be debt partners only, which means will only be returning their principal + interest after I cash out refi.

It is my first time doing that so would like what are the paperwork behind this.

1. I will be drafting a promissory note that lays out the terms.

2. Do I need to put the property in a LLC at closing?

3. When I cash out Refi, i guess my CPA will issue the 1099?

Any help is appreciated.
Thanks