The loan arrangement with the seller is 5.5% interest amortized over 20 years.  

However he is having a hard time with one of the renters - when he tries to arrange for an appraiser to come it.He has a clause in the rental agreement that the (non-cooperating) renter is obligated to let in prospective tenants and repair people, but not any other provisions.

Some will even accept a seller carry-back arrangement - essentially 100% financing for you in the seller doesn't need all of his equity out.

I would say you should research several partnership arrangements and what competitive terms for those arrangements may be.

You can use a lawyer who is knowledgeable in the IRA LLC arrangement or you can use a facilitator who puts the whole thing together for you. 

I'm going to arrange a couple beers with a builder to learn more.

He arranges the meet ups which usually take place in NYC, And he is an all around great guy too!

I would rather give friends and family a 10% rate than a complete stranger.I've been thinking about private money to help finance more acquisitions and like the concept of preferred equity arrangements.

In real estate, you are not judged by what number of arrangements you close a year.

@Ryan Louie, do you have some kind of written document documenting the arrangement?