@Todd Mathisthere are other options like 203k loans etc. i will say hard money will be your best and easiest bet, most likely. i have used it many times and it was instrumental for me.

The lien instrument (deed of trust or mortgage depending on state) will be recorded, and the original promissory note and any other disclosures will be sent to the lender, and once the lien instrument is recorded the lender will also be sent the original.

You can then have the borrower do a closing through the title company where you will be issued title insurance committment (after closing) and they will also record your lien instrument at the correct municipality so your lien shows up in public records.

In addition to promissory note (a document explaining the terms of the loan) you get a deed of trust or a mortgage (an instrument securing the loan). 

Both are different instruments. 

Getting fancy with different classes of passive investors, convertible instruments, elaborate payout waterfalls, or complex conditionals will add costs. 

Assume, guarantee, endorse, or otherwise be or becomedirectly or contingently liable for obligations of any individual or entity, except guaranties byendorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary and usual course of business.10.3.

I took the advice of some trusted advisors and went with a performing instrument to get a feel for the transaction. 

HELOCs are the best financial instrument ever designed.

You just cannot go after the borrower for any money and only recourse is the propertyI have never heard of a BK court voiding the security instrument (not sure they have any authority over it) but can wipe the debt which is what ch 7 does