Financing Cash Property

[Justin Morris]

Here is the situation the properties purchase price is 5k, I'm waiting on the appraisal but it looks like it'll apprise for 20-22K. I plan to buy with cash, this cash is going to come from one of two places, a relative or a friend. I am trying to figure what is the best way to go, my friend is a non-US citizen and lives in Europe. I understand the SEC is very strict about international citizens investing in U.S Real Estate. If this friend gifted me the 5k or paid me for "services" and then I bought the property through my LLC would that work since its under 10K?

Secondly, the property is free and clear, what is the highest percentage a bank will let me refinance? Lets say the bank appraisal comes back as 20K, can I pull 70% out of the house easily? Last question, would it just be better to use hard money? Do hard money lenders, lend such small amounts and are the fees and points going to be way to much? My private money people are willing to take 10% interest.