Best Private Lender Strategy?

[Daniel Seibert]

Greetings!

I am about to close on my 4th property, I have 3 rentals and an owner occupied that I intend to rent out in a year or two.  I am looking to get to get to 20+ doors quickly (1-4 unit properties). I have a family member with substantial amount of capital that is willing to loan me money in order to help with the business. What is the best way to use this resource? I was thinking of three different courses of action:

1. Do large, interest only, loans in order to pay for BRRR properties with cash and pay back the lender once the property is refinanced (no vesting period).

2. Borrow the down payments for BRRR properties with smaller interest only loans (more properties, but longer vesting period).

3. Split down payment and cash flow 50/50 (no loans strictly equity partnership).

I also intend to do this under the umbrella of an LLC. Any advice/input on that?

Thank you for your input!