Flipping - Private Funding Structure - Help!

[Julio Vasquez]

Hello BP- 

Here is the situation:

My partner and I would like to start flipping a few properties we have lined up. LLC partnership 50/50 split - We mainly do wholesaling.

We have 3 individuals willing to lend money for acquisition and rehab of these properties. They will be paid interest plus points monthly or at closing when selling.

The questions are - How do we take title to these properties and how do we secure their investment to these individuals? We either going to have two scenarios:

• Should we take title under the LLC? Trust?
• Lender 1 funds flip 100% (purchase & rehab) - Which contract/document do we use to secure his/her money? A mortgage? (I know mortgage involves additional fees, which we are trying to avoid). Beneficiary of a Land Trust?
• Lender 1 and 2 fund flip 50/50 or 60/40% (purchase & rehab) - In this case not sure we would like to offer a 1st and 2nd in line mortgages to the two lenders since the 2nd will be at a disadvantage. How can we equally offer security to both?

We are meeting with a real estate attorney soon to discuss this topic, but I'm sure some of you guys doing flipping on a regular basis have a system in place on this, and I would like to pick your brain.

Any help is appreciated.

Thank you

Julio