Structuring private capital deals on STRs

[Alex S.]

Hosts,

I am remodeling my 6th STR and am finally realizing that I can't grow fast enough without some private capital. I still have a full-time job and I'm in a profession with a lot of high W-2 earners in my network that would be great cash providers.

I am struggling with how to structure a private capital deal with a potential cash provider.  What are some structures that have worked for you?

Obviously, I'd like for them to just give me all debt financing at a low rate, but these are savvy people and if they believe in me...they want equity.

Just one example, though open to any type of STR deal:

I am under contract on a 4-plex.  $376K purchase price.  75% bank financing @ 3.69%.  $10,000 remodel costs.  2 units are LTRs at $1250/mo each.  2 units are vacant and staying that way so I can furnish them for STRs.

With closing costs and everything, I have to put up $107K in cash.  I'd like to get private capital to help me with that.  How would you do it?

Thanks!