conventional mortgage vs 401k money to buy a flip

[Suzanne HAINER]

Hello!

Input greatly appreciated.....

I have cash to fund the rehab portion of a flip..my partner now wants to buy the property with a conventional second mortgage that she has already prequalified for.  What are the tax ramifications of her giving me 1/2 the profit since the house would essentially be in her and her husband's name?  How difficult is it to find a good deal when you can't buy at auction with cash and you have lost the all cash leverage of making an offer on a preforclosure?  Wouldn't getting a home equity loan be easier than a conventional mortgage? Thanks for any and all input or advice!