Taxes on loaned money?

[Christopher Derr]

I am a new investor and I am trying to understand using other peoples money. Lets say you find a 50k home and it will take 10k in reno to force good appreciation. Appraisal comes in at 60k bank loans 48k (80%) on a commercial loan, borrow 12k from someone for 2k down 10k reno. ARV is 80k appraisal and cash out refi 16k. Pay your investor 12,600 after 6 months or 13,200 after 1 yr at 10%. Is this a typical scenario of how you would use it? now you own a property with $0 down and 16k in networth gain. How would that work for taxes on their money? do you have to do any paperwork on it or file a lein on the property? what other paperwork would be required? Is it typically a lumpsum or do you pay some each month (in this case $100/month, then their 12,000 back at the end of the yr?) I have used my own money on 3 deals just wondered about scaling or adding to my portfolio faster with OPM. Thanks!