I suppose some of the rehab funds may be advanced to you to pay the contractors, but it's more likely the lender will disburse funds to the contractor after some portion of the work is completed and inspected.After you either sell the property, the lender will get back all funds loaned, and you will get all profit or equity.

There are a lot of great answers above and I am happy to hear you already have friends paying a portion of your mortgage. 

Since there is no broker involved on the deal, the investor, would like to take a 'finders fee', but offered to take a portion of the equity instead of cash. 2-3%2) An equity raiser, who is bringing LP investors to a deal normally could be compensated between 1-3%, but would prefer to take an equity stake in the deal, as opposed to cash.Could they be given a portion of equity without actually putting in money?

Got a couple lists, skiptraced it, and set it up on RVM and text blast (I may change the text blast portion). 

She paid cash for it, but here are her yearly fees (approximate):HOA  $2600Utilities  $3000Insurance $2000Repairs/maint $2000Taxes $700CC fees (her portion) $872So about $11,200 in expenses, with a net income for her of approx. $30,000 from an investment of $270K. 

@Kevin Phu   You cannot take a portion out of the tenants deposit out for cleaning.

When vetting PMs it is very important that you ask the right questions, and I am going to include a portion of a recent post that I hope you find helpful.

I could take out a HELOC on my private home for a portion...maybe also a loan...but I think it would still be short of the necessary funds.

You want to see something that has low or no seasoning for a cash out refi or that may require low amount of documents.What is your draw fee & benchmarks for the repairs portion of the borrowed money?

Portions were farmed out for the roofing, electrical, basement drainage system, and driveway.Rehab included: new roof, basement drain tiles/sump pump, bathroom renovation, kitchen renovation, upgraded lighting in kitchen&living room, new smoke detectors connected to power, ran electrical to detached garage, paved driveway, painted throughout, re-finished hardwood floors What was the outcome?