Private Money for Down Payment

[Matt Faix]

Up until this point we've used our own money for deals and financing. We were recently approved for a 80%LTV loan on a triplex that we are buying. If we want to use private funds for the other 20%, does this have to be approved by the 1st lender (Local bank in this case), and would they dictate the terms or are we able to negotiate that with our second lender.

Also, can private money be used to cover closing costs? Or is this always the buyer? Curious how the 'mechanics' of a transaction like this work. Thanks!