Hard Money/Second Lein position

[Jake Lenderman]

I have done a couple of flips, but I have a question.  My parents want to invest, but how does it work if I do a hard money lender for the purchase and use their money for the rehab?  Their concern is they have no collateral if things go south.  I tried to do some research on what recourse they would have, but came up blank.  And just because its family, its still business and the rehab will run about 100K, so it is not a small amount of cash. =)

Thanks for your time.

Jake