Newbie Investor Lending Question

[Jordi Valado]

Hello everyone, I am Jordi a new investor to the real estate game. I am looking to do buy and holds in the midwest, this would be outside of my home state NJ. I have heard many investors speak about using Other Peoples Money (OPM). I understand this comes from a Private Money Lender (PML) or a Hard Money Lender (HML). As a newbie investor my approach to this is to connect with PMLs via facebook groups, REI meetups, BP forums, and asking family and friends. How would a newbie investor like me connect with PMLs on using their money to invest in Real Estate, even though I have no prior experience? I was thinking of making some sort of financial report that outlines costs and their potential return on the investment. This would show I am serious and have some structure or timeline for a PML to have the confidence to trust me with their money. A PML would help me get the down payment for a property, then use a HML to cover the rehab portion. This is depending on rates and structure of the deal. Additional question, would it be smarter for a newbie investor to use a PML or HML?

[Bob Reinhard]

I If I certainly appreciate your enthusiasm. If I understand you correctly what you are looking to do is take a loan for the down payment and then another loan for the remainder of the purchase and the rehab. This would essentially have you have 0% as your stake in this transaction.  This has, essentially, a 0% chance of obtaining funding.
Next, it is highly unlikely that any investor will permit a second mortgage nor will any hard money lender permit a first mortgage ahead of it.  Therefore 2 loans on the property are also unrealistic.
As for the mechanics and the number aspects in terms of percentages and amount down payment and adown payment and I'm on purchase money mortgage and I'm out rehab I will leave this for others to offer their expertise.
Much success.
Bob