Multiple Private Money Lenders in 2nd Position - Legallity of It?

[Daniel Dietz]

Hello all,

We (three way partnership) are working on a deal to buy a porfolio of  properties that will consist of duplexes and a 4 plex for about 870K all from one owner. We are working on finding a portfolio loan that will cover 75% =/-. We could come up with the 25% down put it would tap us out a bit more than we would like, so we are looking into how Private Lending in a 'second position' could work in this scenario. Thinking along the lines of 75% bank loan, 10-15% private money and 10-15% our down payment. The owner is considering doing seller financing by carrying a small second, but wanted us to see what else we could come up with first.

Having talked to some friends, family, neighbors, etc.... we might be able to come up with a single private lender for the second position loan, but more likely it would be more easily doable with a couple of them going in on it.

A few questions are:

• What is the legality of using more than one Private Lender with all the newer banking regulations?
• What is the simplest way to do this with still having them have a secured interest in the properties?
• Would there be any benefit to doing doing some of the properties with more traditional financing being tied to just that one property? (Not sure how to work partnership in that case is only one of us was on each loan/property.)
• Other advice on how to do a portion of the down using Private Lender for part of it?

Thanks, Dan Dietz