I just want to hit this question with multiple angles so I understand how to structure the deal in an educated way as oppose to looking newb(Although I am).

If the deal is structured correctly and your lender calculates out the costs correctly, you can get in for simply 3.5% out of pocket.

Most private lenders will want returns way in excess of that (think double digit interest rates), unless it's family or something along those lines.In order to make the deal work for them, you will want to structure it with an exit strategy that allows some way to convert the loan into a regular mortgage, allowing you to pay off the high interest private loan.Basically, you'll want to put together a deal just like you are doing a flip.

Any advice on how to structure the partnership and/or better ways to invest the $40K?

Governance over IT should include:  An effective management structure that encompasses proper responsibilities and authorities;  Documented accountability that provides clear reporting lines, clear expectations, and the use of authority to achieve compliance with policies and standards;  Strong oversight by the board of directors;  Documented board approval of written IT policies;  Senior Management having appropriate responsibility to ensure integration of controls; and  Security Officers having appropriate authority to respond to security events that occur. 7 “Mortgage Servicing Rules under the Real Estate Settlement Procedures Act (Regulation X).”

I don't need numbers to go to the concept to structure the deal.It's seller financing, he'll have cash flow he can use that to accelerate his other loans if he wants to.

Gross Rent of ($33,900) is much higher than actual collected rent $27,782Expenses (repairs & maintenance) appear elevated for a structure built in 1999.

Especially if they want to get into real estate.Commercial Investing - It is possible to structure a commercial deal so that you actually get paid to do that deal.

How do i go about structuring a "fund" or LLC using multi peoples money?

Then you must know how to structure the contract so it will appeal to a real investor.