Creative Financing for 3-4 Unit in Illinois

[Casey Karbowski]

Hi, I love this site and have a question I really hope others can help with.

First, there are a lot of multi-families in my area with really solid cash flow characteristics. 

I keep trying to get one of my retired relatives to invest in one as its hard to live on bond yields these days. However, said relative doesn't want the risk of equity, yet is willing to take on subordinated debt.

Question: what's the best way to take out a normal loan, say 75% LTV, and then take back a subordinated loan for 8% for the remainder from my relative? I am basically asking if there's a loan product out there that will allow me to do this.

Before you jump in, I have done my research and find its fairly easy to close like a normal loan with my own funds, then the next day take back a loan from the relative for the rest of the balance. I am hoping to be able to do this without coming up with the capital myself, though I might be able to, it would be close. I am aware that there are ways to do this by 'seasoning' the loaned funds for 60 days, then the bank won;t require me to answer questions about the source.

Any ideas?? Help!! :) Thanks for your generous responses.