Using parents HELOC to acquire properties

[Ryan Rider]

So I'm a long time reader and listener to the podcast and forums. I'm at a point in my life that I am ready to finally pull the trigger and get into real estate. So I have 20k saved and available to put into action. I also have my parents on board to use a HELOC on their house with approximately 100-120k available.

I have a property located that is a distressed property. The ARV on this property is approx. 140k. The home owner has moved out and "just wants to get rid of it". She had the foundation repaired this passed April. It might need a roof And does need siding, all new flooring, sheet rock repair and other cosmetic type things. I believe I can obtain the property for 80k. And budget 20k for the rehab. The plan is to BRRRR out and pay off my parents.

Question 1

If my parents give me money from the HELOC do they just give me a check or electronic transfer of the money?

Q2

Does any special forms need to be filled out by my parents? Do they need to file a mortgage on the property? 

I need some insight as to what to tell my parents to expect. They want to help me but I want to make sure I can fulfill my side of the deal and not mess things up.