Using Hard Money with Private Money - How Can This Work?
Dear All,
My partner and I have been trying to get this ship sailing with our first deal, but we are running into a problem, private with hard/lender money.
We ran our credit with a lender, only to find out that we need our own liquid funds even if we partner with a private money investor. My question is, how can you align yourself with a partnership with a private money investor on deals where you are essentially 'gap funding', but want to place the investor in 1st position, without harm? I understand forming an LLC with the investor is an option, but is it possible to utilize a partnership agreement between two separate LLC's?
Ideally, we need assistance with either the down payment or the rehab budget to move forward and close, as we can obtain financing.
Please let me know if you have any experience circumnavigating this issue, and perhaps help us find a way as well.
Open to all suggestions and recommendations,