Partnering on a great deal

[Rebecca Salazar]

Hey guys, I need some advice for how to approach a financial partner on a deal for a fourplex that has been presented to me. I need help with rehab costs for it, we'll be doing a lot of the work ourselves but after the down payment we'll have enough to have a comfortable reserves and I'm nervous this deal is going to go quick so I want to jump on it with a partner. We'll be living in one of the units and renting out the remaining 3 units. We'll be using the BRRR method after rehabbing.

What kind of interest in desirable in this scenario? What kind of things should I be doing to benefit a potential investor? What’s the best way to approach an investor with the opportunity? 

Thanks in advance!!! 

[Patrick Soukup]

We are seeing 8-10% with 2 points on hard money (3-9 months), no prepayment penalty. As someone just starting out new, you may need to offer a little juicier rate than that. That's purely an investor only, no equity stake.

Offer a lesser percentage, but a percentage equity stake on any refinance or sale on the back end.

Go 50/50 partnership and they bring the cash you bring the deal.