Private Money

[Lance H.]

Hi everyone,
I'm looking to purchase a REO property in the next couple months to hold long term as a rental. Just like everyone else my problem is how to fund it. I have 15k in available credit and a decent credit score (mid 700's), but I just graduated college (with $0 in student loans) so I haven't been able to save anything yet. I'm putting away about $500/month in savings now, but I don't really want to wait for that to accumulate to enough for a down payment. So I'm looking at private money.

I have a family memeber who has said they would provide some funding, but we havn't talked details at all and I doubt they would give me enough for a down payment and any rehab costs. So I guess I'm curious how to use private funds without giving up any control.

Should I use multiple people with smaller investments, this seems like it would be easier to find? Will banks provide a 80% loan if private money is covering the remaining 20% plus rehab? If you have multiple people covering the 20% plus rehab you obviously can't just give them a second mortgage, so do you have to make them part owners of the LLC?

Sorry for the 20 questions, I feel like I have a pretty firm grasp on what it takes to be successful at this, but I'm trying to nail down the details. Basically I'm trying to figure out how to structure a purchase so that I can get 100% financing plus rehab costs covered on a long term hold.

Thanks for the help,
Lance