Using Private Money or JV for downpayment on HML advice

[Tim Ivory]

I spoke with some HML about using funds from another private lender (or partner) to serve as the downpayment on the loan. Some places offer 100% loan to cost, others require 10-15%. They suggested I could use a back room deal with another private investor for this purpose, or put them on the llc and it would work, so it seems possible. This is good, because it's my only way to proceed forward at this point. I don't have any funds at all!

Assuming this is possible, how would I structure the agreement with the private investor who will cover the downpayment on the HML? Do they get a second lien position, assuming the HML allows this? Or is the deal structured in some other way?

What percentage return should I offer them, or flat return, assuming I need 15K in capital?

Since I have no funds for the downpayment, I also have no funds if they structure the renovation drafts to reimbursable and they don't upfront the drafts, so potentially, there are two sources of financing I need to consider - downpayment on the loan itself and any upfront renovation drafts (reimbursed each time)

I realize I'm totally scrapping the bottom of the barrell with precious little as a starting point, but I'm sure others have made it in the past before and I'm hoping I can do the same following the wisdom of other investors every step of the process.

I'm also considering a rehab only loan, if the sellers would allow this and split the profit with him, thus negating a sizable downpayment on loan (if any) and I'm only need to contend myself with the much lower rennovation loan costs, to which HML or private investors would be an option.