How to take investors' money

[Nick Lund]

Hi all,

I've only completed one deal at this point but have built a network through other business pursuits, and suddenly multiple people are trying to give me money. Given the hotness of my local market and the trust I've built with them, I could probably raise 100k-200k of private money with minimal effort.

Unfortunately, after speaking with 15+ regional and nations banks, I recently discovered the difficulty of combining private money with bank loanss. Here are some of the limitations I'm facing:

1. Since I already own one property, I can't get another conventional (owner-occupied) loan. That leaves investment loans, with a minimum of 25% down. Not a huge problem, but:

2. Banks require that investment loan down payments come entirely from my own savings--not from gifts or unsecured loans. This preempts the ability to use investor's money toward down payments. 

What gives? Is it possible to combine private money with bank loans? My near-term goal is to purchase a 4-plex, and my longer term goal is to own at least 10 units.

Thanks,

Nick