Partnering with Private Lenders - Strategic Partnership Agreement

[Brianne Leichliter]

Hello BP fam!

I have a situation where I have a "partner" who is my private lender. Neither of us have any interest in being under the same LLC. We act independently but have a business relationship. He finances the properties 100% with a mortgage, I usually finance the rehab or a portion of it and do all of the property management, etc. This arrangement has worked out fantastic for us.

I'm running into a snag with a refinance because of the "skin in the game" situation banks like to see.  To get over this hurdle, I'm looking to write a business agreement outlining the strategic partnerships between our businesses.

Has anyone ever done this?

I have an attorney that I'll be working with on the draft. I'm more interested in the feedback on those who have had this type of relationship and if/what you've documented.