How to buy a property with other people’s money

[Gino Picciola]

I have a 4 unit building that I can purchase for 185,000. It needs 150,000 in rehab. The property will be worth 400-450k once complete. I have an investor that has the 185k to lend me. Should I partner and pay him back, purchase the property cash, and then obtain the loan to rehab? One commercial lender that I do business with has told me I need to sell a rental property and pay off another 40k on another one in order to get the loan on my own. I also don’t have the cash readily available as it is all in my personal residence. My personal home is owned free and clear worth about 250k. Any advice as far as partnerships or how I should structure this deal would be great. I will be using this space to run my business out of one of the units, so I would like an option to buy the partner out or just simply use them as a lender.