Your contractor may help if they have done flips themselves and are okay with being a PG on the loan and member in the entity.

I've heard that in 1-2 years the PG can be removed, but I've also heard it cannot be done. 

The lender isn't bound by your operating agreement, they are bound by the loan agreement, which will most certainly say that you each are jointly and severally liable (which means that each of you and all of you are responsible for the whole deficiency--basically whoever they can get to first, or whoever has the most assets for them to seize).This is why a wealthy person wouldn't want to sign a PG with a broke partner(s). 

An experienced borrower with a PG will be a lot more stable than a first time fix and flipper. 

Working on The contractor and The lender slots right now!

thanks for posting this, it's amazing - basically took investors money and paid out as dividends to old and existing, just like Bernie Maddoff did, he owned very little unprofitable real estate simply as a fake patina of a business to drive the LPs to invest from pg 3 of indictment"Each investor in the Fund also received a written guarantee from NRIA of an annual return of at least twelve percent per year for a period of five years plus a full return of their investment, or else any shortfall would be paid by NRIA."

Drill a hole directly above the slot for the key and you destroy the locks integrity. 

Hello, I'm a new real estate investor working on my first Subject To deal on a property in PG County, MD.

Many fix and flip lenders will allow a PG to be a minimum of 21 % owner in the entity. 

If you are going to try it anyway, you need to get in a low competition slot.