There's a lot of discussion around partnerships, private lending, and hard money, but I don't see much discussion on the actual mechanics - what these arrangements look like in practice.My hope is this post can serve as a reference for those starting out, so we may get a better understanding of how these strategies are actually implemented as well as an ability to more accurately predict the profits and returns you and your lenders and partners can expect.If those with more experience would like to revise these numbers and statements, it would be most appreciated.These scenarios assume you, the flipper, are bringing none of your own capital to the deal.Typically, this would mean 1 of 2 scenarios...Private Lending - Someone you know brings 100% of project costs (purchase, rehab, acquisition costs, holding costs) to complete the deal and in return, they get a certain percentage return which comes out of your profit.Hard Money + Partnership - You get a hard money lender to cover 80-90% of purchase+rehab and a partner to cover the remaining 10-20% as well as acquisition costs (including hard money origination and points) and holding costs (including hard money interest payments).An aside about the structuring...Private Lending - A promissory note is created, and your private lender lends to you or your business. 

This may include such things as paying the property taxes from the IRA and obtaining annual fair market values for reporting purposes.https://www.irs.gov/retirement-plans/retirement-pl...

@Sarah Bunch A good person to discuss this with would be @Dillon Pesce.

Yes, I will definitely be honest when answering any questions, don't want to end my career in jail :)  I'm just trying to strategize and figure out how this approach will impact my ability to obtain loans.  

I was meeting with them in my role as president of our HOA to discuss some changes her Mom had planned that would have been violations of our CC&Rs. 

I’m very open to any discussions and or advice, I look forward to learning from you as well as you from me.

But if you have a list of address, owner's name, and date of recent eviction, I'd love to discuss.

Thanks Fradel - that discussion was very helpful, and I have reached out to a couple of folks who responded on that thread. 

Make your offer contingent on the seller obtaining the correct zoning @JD DiGiacomandrea .

Jared is correct, once you have your team assembled they will do all the work required to obtain permits..