Structuring private money deal

[Kevin Rodriguez]

Dear Biggerpockets Community,

I have come across an amazing deal and would like some input on how to structure the financing.

Currently i have my boss as my main investor for my flip deals but this is a buy and hold. these are the numbers:

1. Purchase price:$700,000

2. Rehab Budget:$160,000

3. ARV:$1,500,000

We have 2 options which are the following.

Option 1:

My main investor (boss) can come up with half of the all in budget $430,000 and we can bring someone else on the deal for the other half $430,000 but neither my boss or the other person would be considered an equity partner instead they would lend for the purpose of getting interest on their money. 

Option 2:

my boss can squire another loan such as a business line of credit for the other half and i would just reimburse him for the interest on that other loan and pay for his interest when refinancing takes place. 

We have discussed both options and would appreciate if anyone has a better way of structuring this deal. Main concern is that my boss feels safe and secure with his money. i was thinking somewhere along the lines of creating an llc with my boss and having him as a interest only partner if that makes sense? so he would own the deal with me until refinance just for the purpose of security. It is understood he won't have a lien on the property maybe the other loan / investors will because he is comfortable lending to me at this point but given the amount of equity in the deal i don't think there should be any worries. 

Worst case scenario there is a default on the loan on my behalf, which is basically impossible i have enough money to hold this for couple years without refinancing, the sale of this property would have enough equity to pay everyone back.

Any input would be highly appreciate it thank you!