it was an interesting process but basically, the novation allowed us to get the deal done without having to involve the banks. this was a huge motivation. that way I save on having to close twice. 

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

@Tom S.Yes I am sure.See IRS link below and see the discussion of 2nd loan involving "Jim"https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans

What paperwork needs to be involved if IRS asks?

I think it speaks volumes regarding your care to the situation the heir is involved in.

The problem now is that if you're looking to do a cash out re-fi (e.g. as part of a BRRRR strategy involving the development of ADU's), there typically are no comps for an SFR + ADU + JADU, so an appraiser makes adjustments to SFR comps and gives very little value to the ADU's. 

The client can distribute proceeds through a private agreement without involving the title.

This allows you to test all the systems and the people involved.  

My involvement would go down drastically to where the only thing I'm doing would be funding the deals.  

We are both 28 years old with zero experience prior to getting involved, she works for the business now and I work Blue Collar in the trades.