Structuring a private lending deal

[John Anderson]

I am going to start looking for private lender partnerships. I would borrow the 20% down payment from the private lender and get an 80% LTV 30 yr fixed mortgage with a hard money lender (~6.5%). I would repay P&I to the private lender monthly over 36 months, likely at 12-14%.

I haven't started asking about the mortgage requirements & searching for hard money lenders that do this yet but would like to figure out some of the structuring details before I start calling.  I will sign a promissory note with the private lender.  Have some questions I am unclear about.

 1)  Does the private lenders name go on the deed or which paperwork does their name go on if they have a second lien on the mortgage?  After the 36 months, when their debt is repaid, do I need to do anything regarding the paperwork?

2)  Am I going to run into hardship to find a hard money lender that is willing to do this?  

Also I have great credit but don't have the DTI & correct ratios to work with banks, so they are out of the picture.

Thanks in advance!

[Odie Ayaga]

You could get the private lender on an unsecured lien, but you're unlikely to find a hard money lender that will allow them to take a secured lien on the property.