Private Lending Using Family Equity

[Mike Matern]

I have a deal lined up with a partner who is willing to give me 50% profits if I can bring the financing ($175k) to the deal. A member of my family has more than enough equity in their home to be able to get a HEL or HELOC which I could use for the deal but I don't know where to begin in structuring the deal. Can my family pull out the money and then draw up an agreement with me by putting a "First Lien" against the property? Should we have an attorney write up the agreement and get it filed at the court house? Are there certain laws/regulations we need to follow when doing Private Lending? Any help would be appreciated.