You might have a friend who wants to invest in real estate but does not want any of the headaches that come along with it. Your friend prefers to lend money as an investment to someone they know and trust to purchase real estate. In return they receive monthly interest payments.

Here, you set the interest rates and terms associated with the investment. You can be as creative as you want. You can include a percentage of ownership or even a percentage of the profit at the time you sell it.

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Be careful and make sure you feel comfortable borrowing money (or investing their money) from someone. This should be a relationship between two people where both of you have the same vision. Think of it as a job interview - the both of you want to make sure you can do business together. 

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