How to use private loan money to pay down payment?
I'm trying to figure out what my options are for creatively financing the purchase of a plex. I found a banker who is willing to finance to up 75% of a purchase if I can cover the remaining 25% in a down payment.
I also have a friend who is willing to contribute the entire down payment. I know that one option for financing the transaction would be to form an LLC where he would provide the money and get a percentage of ownership of the company (and thus ownership of the property.) If I'm lucky, I could negotiate retaining 10% ownership of the property for finding and arranging the deal. However, I'd prefer to retain control and instead structure the deal as him providing the funds for the down payment in a loan arrangement, rather than in an equity position. With that in mind, I'm concerned that a bank would have a problem with using loaned money to pay the down payment, though I know that's how things are done in Robert Kiyosaki's game Cashflow. (Yes, it's a game, I know. But, I wonder if he designed it that way for a reason.)
What are my options for structuring the financing of the down payment with my friends money? Also, if I can structure a loan, how do I actually accomplish that? (Are there best practices on how to do that? Do I need to figure out how to amortize it? If it's with simple interest, would I really need to pay my friend 10% of the entire loan every month or do I have other options? Etc.)
I realize that these are broad questions, but I'd like suggestions that are more specific than, "There are tons of ways to creatively finance the transaction!" If I didn't already know that, then I wouldn't be posting this question here. Sorry to be a cynic.