How to Set Up a Mortgage With Investor Paying Down Payment

[Noah Brant]

Hi All,

I am looking at purchasing my third rental property in Michigan and have an investor who will put up the down payment. The purchase price is $350,000 and the investor will put in $70,000. He will take 20% of NOI off the top, I will take 5% of NOI as a management fee, and the remainder will be split 50/50.

Does anyone have experience with a similar situation regarding taking out a mortgage? Is there a way to have only myself on the mortgage so he avoids liability and not count his $70,000 as a gift? 

The lender will not make the mortgage out to a business so we cannot have him loan it into an LLC and then take out the loan to the LLC.

Any creative ideas out there?