First Private Loan Deal...Need Advice

[Nathaniel Slappey III]

I am putting together my first private loan deal for an investor and could use some advice...

The approach is to utilize the private money loan to acquire the property (down payment, closing cost etc), use my own money to renovate and furnish (very little work is needed, more so cosmetic) and stand the property up as an Airbnb. 

The private lender will have no equity in the deal but only make a return on their investment.

I am not going to be living in this property as my primary residence so my question is because you can't use "gift money" to purchase an investment property through a conventional loan, what are my options to work around this and be able to use the private money to acquire the property?

Do I have any other loan options?

Does this private loan for the down payment count as "gift money"?

Just looking at ways I can do this without going the private equity route.

Any input is appreciated. 

[Josh Caldwell]

Typically when you do this with private money, you have the private loan in a 2nd position mortgage. Closing with a real estate attorney makes this process a lot easier. A normal title company might vapor lock over a non standard deal like this, but your RE attorney can create all of the required paperwork to get this deal closed.