Updated about 3 years ago on . Most recent reply
Looking for info regarding working with a partner that has the ca
Hello BP, I am new to biggerpockets and have been researching RE for about 6 months. With all of the great info here on BP, YouTube and reading RE investing books I have soaked in a lot of info. I am looking to buy my first multifamily within the next 3-6 months and have a question on partnering with someone who has the funds for the down payment. I do have my own cash/HELOC as well but am curious on how it works when using a partners funds. How does that normally work as far as repayment? Do I pay them part of the monthly cash flow I receive? Is it a lump sum payment when I refinance down the road? How does the partnering usually work as far as paying back the funds borrowed from my partner? I want to thank you in advance for any insight and help anyone can provide.
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Pretty much everything is negotiable withing the boundaries of the law.
You talk about your partner, which usually implies they have put up equity, but then mention paying them back for funds borrowed which implies they are a lender. Of course, they could do both. Those two activities are quite different so each would need to be discussed and clarified.