They were created for investors and catered originally to the mutual fund and asset securitization industry.

@Callum SinclairThis is a month-old post, so I'm probably late.The simplest and most effective setup is usually to keep the whole business under your name or an LLC that is 100% owned by you, and set up your family members as lenders, as opposed to partners.If funding the deal makes it impossible, due say to your credit, then you can reverse: have your dad own the property under his name or his LLC, and set yourself up as a contractor for him.Bottom line: it is case by case.

At Closing, your Title Company will verify that the Private Lender's funds are on deposit (likely wired) prior to any document signing or any money changing hands. 

She still believes all that we were brainwashed with and thinks having all your money in the bank or a mutual fund. 

Renting), and now our rent/utilities are so small that we are able to look at using our funds for other opportunities - aka real estate investing!

What about refinancing at that higher appraised value while rates are still low and then using your extra cash to help fund your next purchase? 

In a partnership I'm involved in where I brought the deal and will be handling day to day decision making and managing the original renovation we are splitting things 65-35 so the partner bringing the funds will make around a 15% coc return annually.

I am in the business of real estate investment funding and business lines of credit. 

I would like to do a HELOC to fund the Reno at the other house if possible to build equity in that house as well.

The first will be direct pay from lender, after will be through self-directed ira custodian for the funds.