Without knowing more detail, to avoid paying taxes on your indirect gift (if you do both profit-loss/capital both 50/50), you need to do 50/50 profit-loss interest and 0/100% capital interest on the initial contribution amount or he gets his 100% contribution before anyone gets paid. 

You can have several lenders make a single loan and each have an undivided interest in the note and lien secured by real estate.My private lending package consists of a deed with vendor's lien, promissory note, deed of trust (Texas), a business purpose affidavit or personal guaranty, lender's instructions to the title company (because I only represent the lender, even if the borrower is my initial contact), and letter of non-representation (explaining that I work for the lender and paid by the borrower).The State Bar of Texas encourages its members to educate the public on areas of law, and in that light, this is for educational purposes. 

To answer your question, I initially chose CT was because a few of the markets I was looking at are approximately 2hrs from my home.

I purchased for $350,000; added a fence and new lot for $50,000; our closing costs totaled $20,000 for a total cost of the initial project coming to $420,000.

Reach out if you want to dive deeper into how I got started but those are initial steps I recommend you take!

Most people do finance the initial purchase, one way or another.

Historically there is a poor relationship between initial cash flow and actual cash flow achieved over a long term hold.  

edit: They would re-finance the property and get most of the initial investment to the investors, but hold the property long-term with the same equity stake.

Our LLC company was original buyer initially and then we are wholesaling to another LLC using assignment contract.Seller has signed addendum and acknowledged assignment of contract as well.Now Escrow also wants acknowledgement of   assignment fee from seller.

Hey Todd, same as @Stephanie P. don't know much about the two companies you mentioned in your initial post (that doesn't mean anything negative, just never came across them).