The $30k you borrowed from your friend to put down will be the first position of lien. Banks will not finance you the rest with borrowed down payment. Will your friend be willing as a second lien? If so, you can work out with other private lenders and have other private lender as first, and your friend's money as a gap.
The $30k you borrowed from your friend to put down will be the first position of lien. Banks will not finance you the rest with borrowed down payment. Will your friend be willing as a second lien? If so, you can work out with other private lenders and have other private lender as first, and your friend's money as a gap.
@Samuel Carmichael There are many options to structure this. Here are two:
Secure a hard money loan from a Lender (there are many of them on this website). They typically can provide up to 80% Purchase + 100% Rehab. Have your Private Investor bring in the $30k as the 20% down payment. You can have the Private investor take 2nd Position lien for the $30k, or give him equity shares in your LLC or Corp and a percentage of the net profit, or you offer him both.
Buy it with seller carry back, $30k will be the down payment. Seller will carry a 1st of $X.XX (if owned free and clear), and your Private Investor will take a 2nd position for his $30k . You can offer the seller a set % return and offer your Private Investor the same options as in #1.
Some lenders don't require seasoned funds; just source. Put your friend's money in the bank. Get a letter from the bank that says "Sam has 30K in my bank". Then find the lender that doesn't require seasoning and make sure you structure it so the 30K covers downpayment and closing costs.