Fix + Flip Financing Options

[Reilly Carpenter]

I am trying to scale my ability to do more fix and flip properties beyond my personal capital and have been looking into loan products for investors as well as talking to friends and family about partnering on a deal. My preference would be to go the friends and family route, but it's been a bit hard to get people to commit. So I am preparing to use a fix and flip product if necessary. They just seem expensive, so I'm curious:

1. If you have used a fix and flip product before (with 1-2 points and 8-12% interest), how was your experience? Was it worth it? Are there any watch-outs you'd highlight?

2. If you haven't used them, are there any other lending products you've found helpful? I've heard credit unions and smaller banks can have more favorable terms or specialty products, as well as business lines of credit. But I haven't come across any that seem viable yet.

3. If you've done friends and family financing, how did you move them from "I'd love to help" to "I'm committed and we're doing a deal" without putting the relationship in jeopardy? How did you structure the split/terms/deal? Any watch-outs?