Hello BP.I have a individual that is interested in funding one of my projects as a private money deal, but they have concerns about the paperwork and tax documents being a serious hassle.

Trying to bring on another private lender or two in order to help facilitate that. 

I read on here often about people raising private money for their down payments on properties.  

You can advertise you have a contract for sale.Get a sale and purchase agreement that can be legally assigned and sold for an 1 to 2% assignment feeIf you don't want the rehabber to know how much you paid for it, find transactional funding or get on title somehow with private lender funding or find a joint venture partner to provide funding or get on title with Hardmoney lender funding so that you can buy at first and then resell it.Illegal Wholesaling only means that you're not telling the truth to the seller, and you have no intention of ever buying it, hence the reasons for all of this loud noise about illegal wholesaling.Wholesaling is legal in every state as long as you follow good business practices.

Using it as a bank and providing private lending?

I would also consider marketing to private lenders.

Barring an unexpected Kasich veto the foreclosure process in Ohio is about to change.Here are a few highlights of the bill: Creates an expedited foreclosure process for vacant and abandoned properties.Adopts the Uniform Law Commission language concerning standing and the ability to sue for foreclosure when the note is lost or destroyed.Establishes that a person is guilty of criminal mischief if he knowingly causes damage to the residential property after being served with a complaint in foreclosure.Modifies how taxes will be prorated in foreclosure cases.Allows, after court approval, the use of private selling officers in foreclosure actions.

How does the structure of private lending work exactly?

From an early retirement standpoint. this can either set you back or set you ahead by 10 years vs going outstate or to a private institution if you have three children.  

Dodd-Frank has convinced most private (non-bank) lenders to cease this practice.