Updated over 3 years ago on . Most recent reply
Forming partnership on property already owned
Hello,
I have a good friend who just moved out of a duplex house that he lived in for 5 years. He wants to rent it out and I approached him about me buying into the property with him to form a 50/50 partnership. The idea is this would be the start of acquiring multiple properties down the road.
He currently owes 100K on it with an interest rate at 3.375% with 10 years remaining.
We haven't settled on a price, but for ease of discussion lets say this house is valued at 300K. So he has 200K equity in it.
Looking for guidance on how I can go about buying into this property for a 50/50 partnership. I do not have enough free cash on hand to just buy half of his equity so will need to do some financing. Any suggestions? We plan on forming an LLC to put the house into. Thanks for any help!
I have a good friend who just moved out of a duplex house that he lived in for 5 years. He wants to rent it out and I approached him about me buying into the property with him to form a 50/50 partnership. The idea is this would be the start of acquiring multiple properties down the road.
He currently owes 100K on it with an interest rate at 3.375% with 10 years remaining.
We haven't settled on a price, but for ease of discussion lets say this house is valued at 300K. So he has 200K equity in it.
Looking for guidance on how I can go about buying into this property for a 50/50 partnership. I do not have enough free cash on hand to just buy half of his equity so will need to do some financing. Any suggestions? We plan on forming an LLC to put the house into. Thanks for any help!