Now, the rates are high due to all the fears of defaults in the coming months in the market and all the major players tightening up their lending guidelines and pulling out of certain loans all together. 

Good afternoon,My question is of the legal side protecting myself and two other friends who would like to invest together.

But as @Scott Mac mentioed, you don't get protection from charge backs.  

In my opinion, the rehab was a bit overkill (and took way too long) but now have learned and will make sure to cut costs where ever possible on our next project to protect our bottom line.

I’ve been told I should not do this and should open an LLC or some other umbrella company for liability protection.

I have done my due diligence with screening, but still want to protect myself in case it does not work out for some reason.Cheers,Paul

It is your duty to protect yourself and family first, everyone else comes second and presume others are acting with those same calculations.Don’t beat yourself up, your not stupid or a sucker(not any more).  

from what i am reading here on BP  Non QM investor loans are seeing some of the major players Pause / stop for now.Jumbo loans seem to have really tightened the criteria leaving few who could qualify it seems like There is no question of lending tightening up here in the short term.. 

You must, however, protect yourself.

However, the deferral is not available to any employer that receives loan forgiveness with respect to the Paycheck Protection Program loan as described above.