Private Money Lending Deal Structure

[William Burr]

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