Are you new? Buying an "Off Market" property with "Subject To" and "Wraps" & Selling "Lease / Option"
When buying a property to cash flow, you need to know what your expenses are. The following is one I actually ...

No, this arrangement does not qualify as interest. 1099-INT would be wrong.This is a profit sharing arrangement, and the correct form is 1099-MISC.

My investors, which are just family members and are not in the LLC, they give me cash and in exchange I pay them a percentage of the profit after a house I previously acquired with said cash sells (buy, fix, sell).

Welcome to BiggerPockets @Hailey BarnesFlipping is a great way to make a profit in real estate.

Cashflow is just 1/5th of the profit puzzle.

I know it will take over a year's profit to do this, but the return over the next 20 years will pay off. 

I estimate total construction costs will be around $1.3M–$1.4M.His initial idea is for me to cover the construction costs, and then we split the profit once the project is sold.How would you recommend structuring this deal?

I have/ sold 4 properties in the lelast 4 months for a profit of 270k.

Quote from @Frankie Vozzi: Love that perspective, Mia  real estate can absolutely create both profit and impact when done with intention.

His share of the profit can be reported on a 1099 if it’s structured as a simple investment return, or on a K-1 if it was set up as a partnership.