Questions on using private money for transactional funding

[Kurt G.]

We are pretty much committed to flipping properties one at a time for now, but I am interested in upping my marketing game and wholesaling as we go.  The more I read, the more I am leaning toward double closings, however I lack the funds when a large rehab is underway - like now...  I have a number of friends/family/coworkers offering to invest in our business, so I am leaning strongly toward using their money for transactional funding which does not appear to be very common.  A couple of questions I have are:

1. I see that typical rates are 1 - 2 points.  What would be appropriate to offer friends and family, and how is the deal structured?
2. What would a contract with the PML look like?
3. What are the logistics of transferring funds, especially if they are coming from a family member from a distance?
4. Are there any legal and/or tax considerations we would need to know about?  I am in Kentucky, but could be working with private lenders in Kentucky, Wisconsin or Florida.

Thanks so much!