private money for down payment

[Richard Moreno]

Hi BP, 

I am looking to buy a 6 unit building, but I don't have enough for the 25% down payment. But I do have a client that might be interested in lending me the down payment, which would be about $200k.  Not sure how I want to proceed with a partner? How should I structure this loan?? What I told him is that I would like to own this property outright at some point. Should I treat it as a loan and pay him interest or treat him as a blind investor, where he will receive 50% of rents, and when the property has enough equity or I am able to pay him what I owe him, refinance the property? 

So basically I would get a commercial loan and my partner will put up the 25% down payment for that loan.