Structuring a private money + hard money deal.

[Daniel D.]

Hey Everyone, 

I have a few multi-family properties that im working on purchasing at the moment, but im trying to minimize the cash I have to put out. I have a few private money lenders that will lend me the down payment and I can get the rest with a Hard Money Loan. 

My question is, how is my private money lender protected? For example, on a 1mm deal, they will put down the 200K Cash and 800K by the hard money lender. From what I have seen, the hard money lender protects themselves to the fullest, and they usually get paid out 1st if there is an issue. 

How do you structure something like this? 

Thanks

Dan

[Dave Spector]

@Daniel D.: What you are trying to do would be fairly rare: most (if not all) PMLs and HMLs would require you to have meaningful skin in the game yourself. Regarding deal structure, @Robin Simon is correct, lenders are very allergic to multiple lien holders. Good luck!