The LLC could be the borrower and execute the Note, but the individual owner would need to execute the security instrument... in this case it would be an Indemnity Deed of Trust (IDOT).

The first deed is unrecorded.Also, if you can prove (recording checks, intake sheet, copy of all submitted docs/instruments) that the deed is in queue with the recorder and you are simply waiting for it to be indexed and returned, and you have a title commitment in hand, this should be a non-issue. 

I had one gal that did nothing but split payments every month we usually had about 200 loans on the books at anyone time.In Oregon fractionalized loans are a security so you need the security docs.. which as stated is a whole nother level of pain.I liked the bank LOC the best although the PG is required.. so if thats a non starter for you.. check out if you can fractionalize the debt obligation.. and then have some very good language in your debt instruments about how you handle a foreclosure.. our bank LOCs as stated above were all 5 million and up.. we could go 75% ARV on our loans bank then would loan 80% of what we loaned..

Your excellent real estate agent may be instrumental in this.A final consideration:  if the floor guy is willing to back up the $4/sq ft refinishing bid (i.e. if he biffs it he'll make it right and eat the cost) that's one thing. 

Are there any lending instruments or banks that would finance a deal like this if I were stipulating it as a business deal, possibly forming an LLC?

Yes, transferring title from an individual borrower to an LLC controlled by original borrower is exempt from Due on Sale- D1-4.1-02 of the Fannie Mae servicing guide, allowable exemptions-a limited liability company (LLC), provided thatthe mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

I'll give you the 3ish books that have been MOST instrumental to me in real estate investing:The Millionaire Real Estate Investor - Jay Papasan and Gary KellerThe Book on Flipping Houses and its cousin The Book on Estimating Rehab Costs by J ScottThe ABCs of Real Estate Investing by Ken McIlroyIn these pages you'll find few, if any, shiny objects of "the one thing that's going to make you rich forever", but rather you'll find proven, fundamental strategies that work and are prudent to build your investing career off of.

This could be an LLC jointly owned by the contributors or a Joint Venture agreement, but you'll be thankful for this structuring 5-15 years from now.If you are using OPM to take down a property and you'll be cashing them out, then you don't need a structure like this necessarily -- a promissory note and related instruments can be used and then once the cash-out happens they are paid off and released and you own it pure and simply.

It is always best to read every deed and instrument in the chain of title, fully, to see what is being conveyed and what is being retained.

By definition this risk capital is seeking a higher risk/return dispersion and thus the instrument in current law that limits how much one can invest with certain exemptions is prudent.