Best way to structure conventional + private for renvo?

[Matthew Marcelissen]

Hi All,

I landed my first flip in Houston! Since it's a grandma special, I secured a conventional loan for the home for just the purchase price. My friend offered money for the rehab, interest-only, 12%. Yay! How do I best protect her? She cannot be the first lien holder, as the mortgage company will be. Can I make her the second? If so, how is that done? Can it be put on the HUD at closing? What type of contract or document should we sign?

Closing 18JUL.

Thanks for the feedback and tips!