Closing Process with a Private Investor

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Hey All,

I have a very rare opportunity where I am able to partner with a family member who will provide significant funds for me to continue to launch my real estate investing career. He would be my "Private Lender" and create his LLC to fund my deals and he trusts me wholeheartedly to do what I want with his money as long as he doesn't lose money by the time he retires in 2 years (the dream!). His goal is to ultimately do what he can to really spring forward my investing career. He's seen how I've now rehabbed one property and own/manage 2 properties (3 units). It's on ME (!) to come up with the terms of the lending (like I said RARE). I've been looking around for capital and he's in a great place in life to diversify his investments ahead of his retirement and is convinced that investing in me is the way to go. This is more money and better terms than any other private lender/HML. I'm trying to understand the closing/refi process better when it involves a private lender.

Here's the nitty gritty of what I'm trying to figure out:

1) How easy is it to come to closing with private funds to pay the seller?  Is it a matter of the private lender cutting a check directly to the seller for purchase/closing costs but getting the deed in my name?  Do I inform the seller from the get go that I'll be using private funds or is this irrelevant?

2) Piggy backing on the above, how can I document the above transaction so that when it comes to the refinancing time to get all the money back that I ensure the Private Lender is acknowledged at refinancing closing so the bank cuts a check for him.  Is there something I need to make sure happens on when I close the first time with the cash purchase that it's properly documented that I've used a private lender who needs to be paid back?

Thank you all for your time and I look forward to seeing what you have to share.  Credit due to those of you I've networked with in person and online and shared your knowledge to help me get this far.

Ethan