Partnership / Private Lender ??

[James Babb]

I'm going to paint a hypothetical here, and please forgive me for being a complete noob.

Here's the hypothetical:

I'm looking to buy/hold long term and have settled on a 4-plex with some nice value-add opportunities. (Hypothetically) I've settled with the seller on a negotiated sell price of $400K. I've secured a 30-year fixed rate mortgage (non-recourse) through a local bank at a good interest rate.

The bank is asking for 30% down (or $120K). Closing costs will be around 3% (or $12K). I can come up with $50K total.

My questions are:

1. Typically, would you be seeking a partner with some capital to throw into the deal or a private lender? Or some other type of arrangement? What are some common approaches to solving my capital

2. What would be some main advantages/disadvantages of the above options?

3. How/when/under what terms would the partner/private lender typically expect to receive the return on their investment?

4. What are some examples of how these agreements might be structured?

I'm having a hard time asking the right questions, but I'm hoping you all are savvy enough to kind of get what I'm driving at and help me fill in the blanks.