Best Form of Financing for Second Lien Position on first deal

[Daniel Pitta]

I am looking to go into a flip here in DC with a colleague of mine, who is an experienced investor that has about 12 properties in the area. This will be my first deal. He has about 10 pre-foreclosure properties in his pipeline, that he got through an agent he's worked with on other projects. He's partnered with multiple investors on other projects, and has proposed that I go in with on a smaller flip so that I can have some experience going through the process and we can both make a little money. I have about 50k liquid in my savings right now, and hes proposed that I put down 5-10% percent to go in with him on an upcoming flip. This would be ~20-30k. I'd rather use financing than park half of my savings into my first deal. Apparently most HMLs won't offer financing if you're not in first position. I don't know any private lenders since I'm a complete newbie. I've thought about using a business LOC but know nothing about it. Any advice would be greatly appreciated. Thanks in advance