Help with financing options

[Isaac Dominguez]

Hello BP.

I'm relatively new and will like your imput in figuring out my best strategy when it comes to financing my first deal.

I have partner up with a friend in which we are pulling up $100k for our first project and basically going 50/50 on both investment and return. He plans to get his investment from a HELOC that is 50K. From my side i'm in the middle of 2 conflicting options...

First option:

my original plan was to use 35k cash from my savings and 15K from a LOC at 9.5 interest rate. So basically the 15k would be used when needed for repairs provided that we find a good price on a property.

For the last 2 days i have been torturing myself with this other idea as far as financing my share...

Second Option:

I can use a personal line of credit of 35k at 9.5 in which i would pay 2% of principal balance monthly.

This with a Credit card Line of 15k with 0% interest for the first 15 months and after the 15 months it will go to a 12.9%.

Third Option:

Off course i also have the option of using Private lending.

So in that case it would be;

50k at 16%

plus whatever points they charge..

I'm hoping that with all of your experience and knowledge you guys can help me choose the best possible scenario and figure out the numbers.

I'm aware that most of you prefer using Private money lenders and using your own cash as leverage, however I'd like to get an analysis of these options and then figure out which numbers are more attractive to me and/or less risky.

We are planning to get a 40k profit and split it,since we are buying only in good desirable areas.

We are at the point that we are ready to jump into our first project...

Thanks in advance!