Best way to structure this purchase? Foreclosure with partner

[Matt Cariello]

Hi everyone,

My partner and I found a very solid (single family) flip opportunity in Milwaukee, WI (where we both live) that just went from a short sale to a foreclosure. I have personally never purchased a flip through foreclosure (FSBO or major value-add's on the MLS are the traditional ways we look to purchase) so I am more used to the traditional 20-25% down type of financing through a bank. It's my understanding that the foreclosure has to be purchased with 100% cash down at the time of the Sheriff's sale but that we could then turn around and expeditiously refinance through one of the local banks we have relationships with - getting us back to the more traditional 20-25% down model that we are used to... pulling back out the majority (75-80%) of our cash.

Let's assume:

- Purchase price of home at the Sheriff's sale: $400,000

- Will be refinancing (financing?) the house as soon as we can in order to pull our cash back out

- 50/50 partnership split between my partner and I ($200,000 in cash needed from each at time of purcahse)

- My partner will be fulfilling his portion (his $200,000) down through a personal line of credit he has with a high net worth relative of his

- I don't have the full $200,000 in cash needed on my end for the initial cash down process at the Sheriff's sale (I have about 1/3rd of that in cash which I will be using as my half of the down payment when we refinance / to have for improvements we need to make for the flip)

Saying all of that, my question is: What are the different ways in which I can finance that initial $200,000 of cash down I need on my end for the day of the Sheriff's auction? i.e. Personal line of credit? Business line of credit? Hard money lender? Family loan? etc. A little about me if it helps:

- I have a high-income "9-5" W2 job (6 figures +)

- Credit of 740+

- I am a renter (no home/mortgage in my name)

I'm curious to hear about all of the different ways I can structure this. My assumption would be that it will only be a few days/weeks that I will need this ~$200k float so I am not too concerned about a high interest rate considering it's short term (before we refinance). 

Thanks everyone!

Matt