Hey guys and gals! Quick question for you ...
I'm recently divorced and living with my sister while I save money for new place. My good credit is still intact, and I figure I could get a loan up to $250K. My brother-in-law has some great building skills (he built their house) and lots of extra time on his hands. The housing market where we live is booming. I've got the credit line, he's got the skills, what's the easiest way to make some extra cash? Thanks for the input!
I probably wouldn't partner on a property. I personally would stick with rentals.
I would start looking for a new potential spouse. Two heads are better than one. I contribute my momentum to the spouse I have.
Seriously, your best advice is Â¨Go get married againÂ¨??? That seems pretty silly to me, and certainly doesnÂ´t answer the question. I donÂ´t discount the value of a spouse, and my wife is my best teammate, but thatÂ´s hardly a prerequisite to REI.
Sounds like you have the makings of a good team. You didn´t mention your background at all, but if it´s new to you, I´d start educating yourself on RE investment and flipping. There´s a ton of resources here on BiggerPockets - blogs, books, forum posts, etc, everything you need to get started. Without knowing your market (and what $250k can get you), my move would be to look into distressed multi-family properties; you and your brother-in-law can partner for the equity share and he can bring in the experience to renovate, and it gives you a place to live and manage.
Personally I would find the best-quality three or four unit I could find. As an owner-occupant of a building with 4 or fewer units, you will be eligible for pretty much all of the standard residential mortgage programs.
Find a four unit, with one unit for you that has an extra bedroom for your kid(s), and put a relatively small amount down. Then look around for what to do with the rest of your funds.
For quick cash (at your highest marginal tax rate, of course) it sounds like you may have a foundation for a fix and flip. Leave nothing to chance and put any and all agreements with your bro-in-law in writing. Have clear expectations. Consult experienced counsel on how best to structure. A couple ideas are buy as tenants in common with a JV agreement, or form a partnership/LLC. You could also be the lender for his property. Seek competent legal and tax advice! Good luck @Joel Daugherty !
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