Updated over 7 years ago on .
Purchased first 2 unit property with 4 investors
Hello Everyone.
Purchased my first property with 4 other investors. I do not have great credit nor a lot of assets so I looked for investors to purchase my first property. I structured the deal so that the 4 other investors would hold the note and come up with the funds needed to purchase. All 5 of us are on the title and deed. I would act as property manager for the property, and in lue of fees I would put those funds back into the operating account until those funds matched the initial investment that was needed by the other 4 partners.
The numbers for this deal worked out as; property cost $83k and is a 2 family houses, 25% down and we took out a 15 year (yes 15 and not 30) conventional loan. Initial investment of the 4 partners was $8,000 each. Our mortgage/tax/insurance comes to $1050 a month. I am taking a management fee of $100 a month (which is being put into the operating account until it reaches the initial $8k investment to match the other partners). the 2 units combined rents for $1550 a month ($850 and $700).
I am looking to structure another property deal on a 4 unit.
Does anyone have any advice on how I structured the first deal, and how I could better structure my next deal? Was my first deal a good investment.
Thank you for the help!