While I was going to do 50-50 with the seller where I had the private deal, he did not have a realistic idea of the market value of his house.

Overall, I'm pleased with how the purchase has went, but I definitely need to be more diligent in the future as I start to use more of my own capital or private funds.

Just wanted to say Hi to all.I keep hearing about the opportunity to use private lenders vs hard money lenders for the purpose of fix and flips but it all seems to be hoops, red tape and flub (from other sites)...

Also do you mind walking me through some of the bank finance and private money deals for the down payment? 

This refi will cash out the seller and private lender.After that, all expenses are the same except for my mortgage payment, which will be $596, and I will cash flow $257 per month. 

What is the best way to seek out and find opportunities to become a silent partner in a privately owned business?

I concur that the biggest problem with putting it into an LLC is that you will probably, or definitely (consult a CPA), lose the capital gain exemption benefit of $500k for married folks if you sell it.

This seems like a no brainer, but my husband and I don’t want to put all of our eggs (cash) in one basket as far as the financing goes so we are looking at the options with VERY low money down I’m looking at hard money and private lender options.

@Jon Dorsey - You will definitely still be profitable at $2M albeit less than you may want.Are the utilities public or private?

I would also point out that you did not give enough of your current status as to strategy, risk tolerance, age, income currently, etc. etc. etc.There are different options available for a private residence.