Conventional loan with private or hard money for down payment.

[Gary Moore]

We have an opportunity for a really sweet 50 unit off market deal 2 blocks from a well known college. Looking for creative financing for the down payment. How do you all structure your repayment for the hard money or private money for the down payment on the loan? Looking at $770k for down payment. Typically hard or private money would need to be paid back within two years or less. This kills the cash flow and creates cost to hold for the two years until the down payment is paid back in full. Looking for creative options to the hard or private money lenders while still cash flowing the property. Possibly equity share…? If so how do you structure? 

Thanks in advance for any help and sharing your experiences! 

[Scott Wolf]

@Gary Moore I think equity share might be the move here.  As @Joshua Janus mentioned, most HML's won't want to be in second position, and even if you can find a private lender, will it still cash-flow with an additional 10% in interest cost?