How to properly use private money???

[Hudson Walker]

Hello fellow BP’s,

I have a novice question. I am looking to buy a single family home and potentially do a brrrr. I have capital of my own and want to partner the deal with a family member. Basically take a loan from them at whatever percentage and then pay them back at the refi.

My friends at the bank tell me to be careful because that would be considered a gift and that can be taxable.

So what does a real estate loan from a family member or a private investor look like it?

Are we setting up a joint account?

Are we both on the deed?

Are they just sending me the money praying to the gods I don’t rip them off, btw I would never do that.

Thanks in advance