Private Lending for Down Payment Only

[Michael Lynch]

I'm a newer (2 duplexes in 2 years) buy and hold real estate investor. I financed my first two properties using Conventional mortgages, which has its pros and cons. 

Recently I came into contact with a potential private lender and I had a thought. I'd like to take advantage of low interest rates and get locked into as many good properties as possible soon. Has anyone on here ever structured something with a private money lender regarding a shorter (or longer) term loan JUST for the downpayment? The property would be in my LLC's name, but I would be getting help regarding financing the downpayment.

I understand that banks usually ask for copies of bank statements so would this loan have to be considered a "gift?"

Any advice/help would be appreciated.