@Donnie Wilson, you should have formal legal documents drawn up, and treat it like any other hard money loan(title insurance and all). 

Once we closed, formally funded the project, and had the plan in place to execute the development, we were comfortable that leaving our jobs in pursuit of a career in development was a justified move.Ok so back to the action.

., you are getting folks that are looking for a less formal arrangement (who i can imagine might gravitate towards a room-in-a-house situation), and who are then scared away by a thorough application.  

Some lenders require formal appraisals and such which can impact your ability to close in a short window.

Hi BP Community,I've been lending informally for the past couple of years to family and friends on fix-and-flip deals, and I am now looking to formalize it i order to raise further capital and grow a sizable book.

You could also get connected with a private lender who doesn’t require all the formalities of a bank loan but understands your overall financial stability.

yes you should do a formal lot line adjustment or easement. this will be an issue in most instances.

The fundamentals are coming along and even though we haven't even formally offered yet we're still making progress and further along than we were in November.  

If the owners fail to maintain a formal legal separation between their business and their personal financial affairs, a court could find that the corporation or LLC is really just a sham (the owners' alter ego) and that the owners are personally operating the business as if the corporation or LLC didn't exist.

I haven't seen that catch on in a meaningful or formal way here but with housing and rent prices what they are, I suspect it's happening more and more in an organic way.