Private money for flip

[Shannon Moyer]

Hi all, 

I just upgraded to PRO today! Taking my first step towards REI and flipping. After researching, I cannot find the exact answers I need to for my questions, hoping you all can help! I think I found my first house to flip and need to make moves fast. I will be using a private money lender - my father in-law. He will be loaning money from a Merrill Lynch account (I believe it is an IRA).

Questions:

1. How do I get the money LEGALLY? Meaning following all the rules re: tax implications, etc. Does he just wire the money to my account?

2. How does IRS tell the difference between a loan and gift money?

3. If he funds the purchase and repairs, I will do all the work (meaning some demo, finding/scheduling/managing contractors & projects, etc) we will spit the proceeds. Is this a fair arrangement?

4. Do I need an accountant or a lawyer?

5. Are there any other questions I am not asking that I should be????