How to fund my first deal?

[Tabitha Fox]

Hey BP!

I found an off market single family home in my neighborhood. I've spoken to the owner and know her asking price ($75K). It needs a lot of rehab. Probably around $40K. ARV should be around $160K. This home would be a non owner occupied flip. I'm meeting a contractor out there on Thursday to get closer rehab numbers.

I'm trying to figure out how to fund the deal if the stars align. My MIL has set aside about $25K for us, and I have a few more people who are interested in loaning capital (not sure on the amounts just yet). If we can raise enough to pay cash & rehab, how is that drawn up legally? Or even if we just use the $25K from my MIL? 

It'd be iffy if the home could qualify for a conventional mortgage considering all the rehab it needs, so I don't think a regular mortgage is in the question. Plus, we haven't had down payment funds in our account long enough to season.

Personally, we have about $12K. No debt other than our personal mortgage. Excellent credit. 

Should we look into hard money if we can raise all the capital? Being our first deal, I'm pretty nervous about hard money.