LLC cash purchase moved to investor capital

[Ryan Morrissey]

If I were looking to purchase a property with cash through an LLC and get it cash flowing with LTR or STR (depending on property). Then, have an investor refinance the property with their financials while being added to the LLC as a partner and they pay me the principle back directly, so essentially they are funding the purchase once the dust settles and my initial investment is paid back (or close to it). What's the best loan to approach for this scenario? Classic cash out refi? Are there any lenders willing to leave less than 20% equity in play (ideally 15% or 10%)? What potential hurdles do you see with this approach?

[David M.]

@Chris Seveney I think the issue is the resources are "reversed."  The investors don't have capital, they have "credit."  So, the "loan" is actually the "investor" taking out a loan.  The OP says he has the cash.

@Bill B. The cash out refi is possible since the "investor" would be a member of the LLC... But, I agree this is very messy. Its not a "fair" setup, but I'm not sure which of the two is making out like a bandit potentially.

@Ryan Morrissey I think this is confusing since normally an "investor" is somebody with capital / resources.  But, you are saying they don't; they only have "credit."  You can certainly do anything you want, but probably better to run this like a normal deal where get paid as a GC and property manager, and they buy the propery with their credit and take the risk...