Hard Money/Private Money

[Brandon Allenczy]

Hey BP!

I'm looking at scaling this year and my goal is to buy 6 more units (3 duplexes or equivalent).

I'd love to use the brrrr method to get these so I can minimize the cash I have tied up in the properties. That being said I've never used any type of short term financing before so I have a few questions I was hoping to get answers to.

1. Can you combine private and hard money? Say a hard money lender will give me an 80% LTV, if I borrow the 20% down payment from a friend, would that be considered illegal crowd funding or something? I feel like I've heard before if you borrow money from too many unaccredited investors you can get into some kind of trouble.

2. How do you show proof of funds when putting in an offer and using private or hard money? If I put in a cash offer and the seller wants to see proof of funds how would you handle that? Just get your lender's bank statement or something?

Thanks everyone!