For BOTH, the income passes through on the K-1s from the S-Corp or partnership, and will be taxed at your ordinary rate on your personal income tax return.

I withdrew money from my IRA and it will be taxed as ordinary income.

Its not passive any more and now consider writing it off under IRC section 162(a) - "ordinary and neccessary business expenses."

Here's a related thread that might help you: Finding and Researching Private LendersWhile many hard/private money lenders can close quickly, and 4 days is not out of the ordinary for a business purpose loan such as for a flip, your loan will be a consumer loan.

What are your thoughts on holding flips for just over a year to be able to take advantage of the capital gains tax (vs selling in under a year and being taxed at your ordinary income rate)?

If you're in that 39.6% federal tax bracket getting to write off depreciation is much more advantageous than if you're in the 15% tax bracket (isn't marginal ordinary income fun?).  

@Rich Hupper They'll be taxed at the ordinary income tax rate.

@Matthew Stallings, In general you'll pay a lot less taxes on an appreciation vs cash flow play - Mainly because of cap gains rate vs ordinary income.

Flipping creates an ordinary income that is taxed at an ordinary tax rate. 

Or, he could put the amount above his basis on an installment sale essentially owner financing a portion to you, which would give him capital gains taxation instead of ordinary income tax.