How do you use your hard money lenders??
The impression that I've gathered, mainly from reading about the BRRR method, but also from other places, is that a hard money lender is used to finance the deal and as soon as a refi is possible you get in bed with the bank and the hard money lender is out of the picture. However, a friend/mentor who is a successful real estate investor talked to me last night about another way to structure a deal. Essentially he takes the deal to the lender and asks for a partnership, ie: "You put up the funds, I'll rehab it and manage it and we'll split it all 50/50". He creates an LLC for each individual property where the terms of the partnership are all laid out and everything is shared: cashflow, costs, and equity. Does anyone else structure deals with hard money lenders this way? Why or why not?