Down payment for an apartment building!

[Joel Armstrong]

This is probably straight forward for some investors, but that’s why I’m here. I have no experience with financing larger apartment buildings and I’m wondering about down payments. I’ll give you a simple hypothetical. I’m purchasing a 6 unit building. I have funds for a down payment, but decide to borrow the downpayment and hang on to my own funds as a reserve fund. I secure the 20% needed from a private lender; how does the private lender get his return? 

Do you set it up as a straight forward loan over a set number of years?