Is It Just a Promissory Note If It is A Debt Item

Is it just a promissory note if it's a debt item? If you are going to structure as debt, then yes, you can put a promissory note. If it's a partnership, then, uh, they would be a partner on the deal. So go into a lawyer, but have them draft that for the LLC creation, as they're going to be a partner on it. I would always pair that with an option to purchase them out in a fixed period of time, uh, so that you have an ability to own the deal and they have the ability to walk away with a healthy return that they're happy with. It's going to be one of the two. It will be a note backed by either the real estate itself or the LLC that owns the real estate. You can do either one because you can't always— the first position doesn't always allow you to take on second position debt. If not, back it by the LLC. If possible, back them directly by the real estate, note deed of trust, have a lawyer draft it. If, uh, you are doing it as equity, there'll be a partner on the LLC and it'll be paired with an option agreement.