Partnering on a flip

[TJ Thompson]

I'm planning to partner with a local REI on a home flip. As we've worked it out so far, here's how it stands t play out:

1. She found the house, presented the comps, and proposed the repairs which I've agreed to.
2. I pay the full purchase price of the house and half the repair fees.
3. She pays the 2nd half of repair fees.
4. She closes on the house with my money (because that was the initial deal) and then turns over the note and deed of trust to me. She legally owns the house, but I own the note and it's secured against the deed.

Is this the right way to handle this? Anything I should look out for? I guess I should get the note when I first lend the money, right? But it won't be secured until she closes on the house, right? I trust her, but let's just assume I'm wrong, what's my exposure? In general, what else should I look out for?

One other thing I was thinking about is that the money I loan for the repair work will be unsecured. Should I do it "pay as you go" so there's no chance of that money disappearing?

Thanks!