Information disclosure to banks when using private money

[Chris R.]

Hello all,

Today I ask a hypothetical question. If I had a private money lender finance me on a downpayment of say $50,000 at 6% with agreed upon repayment terms,

(1) How and what do I tell the bank about how I got that money?

(2) What does the lender have to do to document it on theiir end?

It may be a gross over simplification of a situation but it's a potential way for me to purchase a 2nd multi family.

Thank you!

i