Wondering what should I do?

Question

So, a friend of mine acquired through inheritance. The taxes and paperwork are all up to date, and she would like to renovate the property, but doesn't have the funds. She recently asked if I would if I'd loan her the money, but I was considering a rebuttal of us becoming joint owners of the property? I'd like to know if asking my friend if we could become co-owners of the property instead, would be a better option?

Manny Heard · Answer

@Robert Anderson most definitely, I've learned from past mistakes with lending money. Thanx for lending an ear, and for the great advice.

Robert Anderson · Answer

@Manny Heard Okay that sounds good, So she needs your money to renovate the property, I would run the numbers on a BP calculator to see how it would look with the ARV and estimated repair costs, and if all the numbers work I would say lend her the money and have a contract dictating how you get your money back.

Manny Heard · Answer

@Robert Anderson the property is a duplex, so we talked about her living in one part. The plan would be to renovate the property, she'll inhabit either the upper or lower flat, and we'd split whatever the rental fee would be for our tenant. We discussed our end game as well, we'd either keep the property, and build a portfolio off of it....or we'd sell the propeety at a later date. The surrounding market area near the properties location is very strong for buyers, quite a few properties have been bought and recently started being renovated as well.

Robert Anderson · Answer

@Manny Heard That depends on what your end goal of the property is, do you want to sell it, keep it and rent it out, live in it, and what does she want to do with it, then you need to figure the number for whatever strategy you want to employ, if the numbers work and you both want the same thing or at least can agree on something that will give an answer. This is too much of an open ended question, there are many things that you would have to take in consideration