Private lender deal structure

[James Angelica]

I am working out a deal with a private lender. Initially she was going to fund my flips using IRA funds and we would split profits 50/50. Now she would like to borrow funds secured from her brokerage account @ 4.75%. Should this interest be figured in my expenses before we split profits or should the loan interest be paid out of her portion of the profits?

I am new to flipping so I want to make sure I structure this deal right from the get go. Any advice would be appreciated!