Private Lending Strategies

[Eddie Gonzalez]

Good morning,

I currently own 2 properties and looking to acquire a 3rd property. I am struggling to understand private lending and the way banks see this. My lender has told me that the only way I can borrow money from someone else is to have it gifted, they have to show proof of the funds were in their bank for 2 months. Is this the way it should be or are there other lenders that view this in a different way?

[Jay Hurst]

Quote from @Eddie Gonzalez:

Good morning,

I currently own 2 properties and looking to acquire a 3rd property. I am struggling to understand private lending and the way banks see this. My lender has told me that the only way I can borrow money from someone else is to have it gifted, they have to show proof of the funds were in their bank for 2 months. Is this the way it should be or are there other lenders that view this in a different way?

 @Eddie Gonzalez   Sounds like you are applying for a conventional loan, but trying to borrow the down payment from a "private lender". So, you are mixing two lending strategies.   If you are looking to go conventional then what you are being told is accurate. (other then the fact that you cannot have gift funds for a non-owner occupied property)  You would either need to have the funds "seasoned" for two months before you could use for a down payment. Or, if the person giving the down payment is really just a partner in the deal you can add them to the application.