Hard Money, Private Money, Show Me the Money!

[Holly Barrett]

Okay ya'll, I'm confused. Here's the situation. 

6 unit Multifamily in Arkansas

I MIGHT be able to show the reserves needed (but really it's a stretch)

$250K Purchase Price

$100K renovation

$500K ARV

$6K After Repair Monthly Rent

(I WANT THIS PROPERTY!) We have another property in the same town so I already have a solid team in place. 

I thought I could borrow down payment from private individuals inexchange for let's say a 10% return after renovation. However, the hard money lender I just spoke w/says they would need to have an equity position. I don't really want to take that route, too many cooks in the kitchen, drama, you know! 

However, if I am doing a refi after reno would we structure it like: they have equity position during the fix and flip post purchase stage and then I essentially 'buy them out' with the cash out refi $ into a long term loan post rehab?

Are there hard money lenders out there with lax reserve requirements?

My brain hurt, someone dumb this down for me! :)