How is first position assigned?

[Frank Pressel]

I understand various strategies in getting money upfront to do the BRRRR strategy. You could get private money, hard money or use your own. Then you refinance later once the rehab is done and tenant in place. My question is how do you determine first position lien on your operating agreement when you are using multiple sources of money to originally purchase the property. I understand hard money lenders will require to be in that position. What if you use two different sources of private money?

[Kyle J.]

Typically lien priority is determined by the order in which they’re recorded (first recorded = first position).