How to set up deal with private lender for flips

[Jennifer Pithie]

I have two properties I want to flip in the LA area. I own one and have negotiated purchase on another. I am an experienced designer and have private lenders (friends) interested in investing. What is the best way to set up the deals for each? I've never worked with private investors. Both are SFR and rehab would be SFR + new addition with ADU.

Property 1: $525K mortgage (I own), rehab $500K, sell $1.9M

Property 2: $750K (negotiating now), rehab $400K, sell $1.9M 

Both projects would take about 9 months. 

Jenny