I would like some feedback on how members have formed partnerships with another individual to invest in SFH and/or small multi family units. Legally and/or logistically what has worked. Who brings what to the table?
I have one SFH that was financed thru a private lender. I am currently working on my second deal so I am a newbie in the game!!
I am currently a JV on a deal but have a partnership with someone else entirely. We are the money portion and the other party is the sweat contributor. What market are you in?
How has your experience been with Private Lending? I am looking to do that next.
Am completing my first flip with a JV. My partner had the purchase money and I have all the rehab money & real estate expertise. Fortunately, for me he is only asking a 3% interest on the loan not payable for three years. But I will pay him back within a year. No prepayment penalty. I keep all the profits. The next project will be bigger and I'm sure it will have different terms. My next JV is similar but a possible structure of 60/40 to JV and first 5% payout to the partner before I start taking my profit. Equity, cash out refi, selling etc.. is all 50/50.
Thank you for the feedback. I am in the small town of Roanoke Virginia. The housing market here has been pretty hot in regards to properties going on the market and selling hours to a few days, at the price point that I am looking for. I have been thinking outside the MLS in regards to finding a good deal. While looking and getting the financial part lined up I have totally emmeresd myself in all the education I can get other than hands on learning.
Going thru private lending was, to be honest, really simple. It was thru a family member (a good relationship already astamblished) who has been a really big part of my support team as I start this journey.
And by “hands on” I mean actually acquiring the second property, rehabbing it, getting it leased. Those types of things. I am analyzing properties and going to look at houses on the market.
I recently purchased a portfolio of rental properties in Roanoke with a partner. We set up an LLC. My partner received 8% ownership off the top and the rest was split based on the percentage of funds we contributed. He received the additional 8% because he brought the deal to me, arranged financing and property management, and he will be managing the LLC.