Partnerships and Private Money

[Kayla Jacobson]

Hello again! I'm getting myself in a good spot so I can purchase a fixer upper in the next month or two. I'm realizing I most likely need to do one of two things: 

1) Partner with someone on an on-market deal (which is difficult because the market is crazy, as you know)

or 

2) Find private money to fund a flip, refinance into a conventional loan, and pay off the private lender.

If I do option 1, do I need to create an LLC with them? Or do they become co-signers on my mortgage? I know the bank doesn't like to see a large amount of money put into my account right before closing so how does that work out?

And for option 2, is there a certain percentage I should look for that makes the most sense? Will I need a down payment for the lender? And is it just interest only payments until the loan amount is due? 

Thank you for taking the time to answer my questions and help me out. I am still learning so much!