So I have a deal, and I think I have an investor too. My question is how do I set up the deal? I been looking all over BP for partnership deal examples but I haven't found any. The ones I did find where about partnership LLCs. Anyway this is what I am thinking: The investor would give me the money to pay for the downpayment and rehab for the property, I would buy, rehab, and manage the property. I will do a cash out refinance after 6 months or as soon as the rehab is finish (I have a few credit union banks that will allow me to refinance it as soon as I finish the rehab) and pay the investor back his down payment and rehab cost plus another $10k. Is this a good way to do a partnership? I am a buy and hold investor so this is the only way I could think of doing it and being able to start. I was also thinking doing this but on a payment plan to the investor? Any and all ideas and help would be appreciated.
I'm looking into a similar strategy. Quite interested to see what folks say.
@Brian Barfoot Honestly thinking this may be the best way for a buy and hold investor. I would even do a 50/50 split where we would split the rent income just to get at least half the deal.
This is what I've been wondering for a buy and hold deal. If I find the deal, do all of the legwork, assume the mortgage, and manage the tenants, what should I offer to the potential investor who would cover the down payment and repair cost? If there isn't a cash-out right away (closer to turnkey) would I just give them all of the cash flow until they get their money back? Seems like a long wait for payoff on my part.
@Brian Barfoot Yeah I am a little suck there too, I was thinking if I could cash out because it was closer to turn key I would do a 60/40 split on the rent, that way you still making some money and that partner now will start to trust you and will be willing to give you more money to do more investments.
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