Private Money Lending Deal Structure
Hello,
I have recently secured two private lenders who are very interested in working with me, however I need to understand how to structure deals with them. Here are the two scenarios.
The first private lender wants to start with investing $20k in a deal.Upon securing a deal, I know that I can put her in the position of a 2nd mortgage, if I had another private lender. My question is how would I structure the deal if I have to use hard money? Could I use her funds for a portion of the deal, and use hard money for the remaining balance, or should I just use her funds for rehab costs?
My second private lender has the ability to qualify for a conventional mortgage. Essentially she has the credit, and I have the ability to locate and even manage the property. She would like to partner on a deal with me asap for a multi-family property, but I am not sure how to structure a deal with her. I would greatly appreciate some advice on both of these scenarios.
Thanks,
Will