Getting private investors for first flip

[Ryan Johnston]

Hey BP!

I have a pretty basic question for you but it's curious nonetheless. I have a potential flip lined up but I can't fund it all myself. I was going to resort to hard money, I ran my numbers and it worked out. I've been talking to a lot of people about flipping properties, specifically people at work and family/friends. They have money and they like the concept of investing (especially when I tell them the potential return they can get). I'm offering up 12% because that's what the hard money lenders wanted. Except with private investors I don't have to jump through some company's hoops as well as saving money on origination costs etc.

I was wondering what is needed to pool together private lenders. There's so many things online about this but it'd take a long time to sort through. Is it as simple as having a contract written up by an attorney that says you give me money, i buy the house, make all the flipping decisions, this is the promised return, here's how you'll get it?

I wasn't going to do private money first because I wanted to show a proven model to investors but people keep wanting to invest with me (not a bad problem to have, eh?). It might come down to doing half private money and half hard money. HML to fund the house purchase but private money to fund the rehab.

What are your thoughts?!