Essentially it is unsecured, but my friend trusts the RE agent (it's a friendship). 

Don't treat this differently and screw around with how the $$ gets moved around just because you are friends....that's a recipe for disaster and an end to the friendship real quick.If your friend wants you to front $$ for a unit rehab, then you need to make arrangements to be a bigger partner in this "business" and you need to work out those details.

Use that free money from the house you don't own to pay for it.Contracts save friendships.

I always separate friendship with business. 

Best way to ruin a friendship is go into business with them.

I am sure some lenders will chime in below pointing out how Tim is incorrect about not being able to "buy in the name of the LLC".I would seriously rethink going into business with your friend for 4 reasons:1) I can tell already that he will not make a good business partner.2) I'm guessing you are just going into business with him because he is your friend, not because he is bringing any experience or expertise to the table.3) This will likely ruin your friendship.4) It doesn't seem like you have thought this all the way through.

Through it I've experienced many unforgettable moments that I only imagined prior, a unique sense of our world, constant travel, and friendships across the globe.

If you want to keep friendships separate, keep them separate.

Your friendship and relationship with this person is done with for good.

@Corey Kenney hard money lenders don't lend based on your "friendship" with some stage guru.