This is not a bad idea, and the risk with the HELOC collateralized by your home is shifted to a loan collateralized by the investment property (as it probably should be).

A HML is not going to let you give collateral to another bank.Being that you do not have any experience, do not have a down payment, have poor credit, and really have nothing to assure you can do this I don't see a HML or anyone willing to take on this loan...Everyone willing to lend money is primarily concerned about being paid back and their risk goes way up given your circumstances.As mentioned you could try to partner with someone with a down payment or know-how but you will have to bring something of value to the table to have them bring you through the process.Your best bet is to start saving and keep acquiring knowledge of your market and the flipping process. 

Re "apply for the mortgage together": as a beginner, you are confusing terminology a bit here, so let's break it down into the various parts.People apply for a "loan secured by real estate", and refer to that as "applying for a mortgage", but that is not following the strictest definitions of the terms.A "loan secured by real estate" consists of two components: a promissory note, and a security instrument that pledges the real estate as collateral to secure the loan.

Alex you should require that AOM to be recorded before you take delivery of the collateral files and even have it as a condition in the MLSA, don't take it for granite that they will take care of it for you. 

Do I:  (A) sit back and be happy to be the agent on the buy and sell deal and maybe a finders fee(B) put my wife, kids and house up as collateral for the private $$?

I figured no bank is going to give me money since I am 19 with no collateral.

Here is how most work:Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 Max Loan: 65-70% of After Repair Value(ARV) 100% Rehab Financing Available (Most Deals require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

I have a bank that absolutely loves this collateral.

Without money down, you can always collateralize properties.

We are a fan of pooling properties in a collateralized line (the "LOC") and add/drop properties over time with substituted collateral and/or releases.