How to fund a down payment?

[Adam Lang]

I am looking to purchase a few duplexes for rental properties and should be able to get the loans to do them but I don't have enough to cover the down payment. What is the best way to still be able to purchase the property. My thought was to offer other potential investors a note to cover the down payment and then pay both them and the bank on a monthly basis. Is this something other investors would do/be interested in? If so any ideas on interest rates?

[Daniel Dietz]

We have solved this problem by taking on a Private Investor Partner, not a Private Lender. They bring 100% of the down payment (20-25% depending on the deal and lender) in exchange for 50%. We do ALL the work from finding , purchasing, manage rehab, place tenants and ongoing PM for our 50%.

Cash flow is split 50-50 and equity growth will be split 50-50 when we refinance or sell out down the road. They will get their original capital they put in back before the equity split. We do this all in an LLC to keep things documented and easy to understand.