Updated almost 10 years ago on . Most recent reply
Purchasing properties with an investors money
I need some advice on purchasing additional investment properties with the use of an investors money. I purchased my first rental SFR two years ago and have definitely learned several "do's and don'ts" in the past 2 years. Here is what I am considering, and need feedback if this would work or if there are any issues I may run into. I have a potential investor willing to fund me in a cash purchase a SFR for around $130,000 in the investors name. Once a tenant is established the investor is going to cash out refi $100,000 and give funds to me, to which in turn I am going to use $25,000 as down payment to purchase property from investor. I will use the remaining $75,000 for three $25,000 down payments on additional investment properties. My plan is to purchase one at a time, so that a tenant is established in each as opposed to purchasing 3 at one time. Is this feasible, or would there be a better way to use the investors money? Any thoughts and feedback would be greatly appreciated.