Investor · Bremerton, WA · Member since 2013 · 45 posts · 16 votes
Hello,
A partner and I are going into a multi-family building together but need money for the 20% down payment. What is customary for this? Would that cash partner receive 50% and my other partner and I split the other 50%?
Rental Property Investor · Lewiston, NY · Member since 2014 · 192 posts · 97 votes
11y
@Blake Yarbrough why not have the individual loan you the down payment, secured by the property, at a rate that is more than he can make in the market or in a CD and calculate that amount into the total debt service. Refinance in a couple of years pay him off and you ask him if he wants to fund the next down payment.
I agree with Jon in principal. But it is hard to get 100% of the equity.
The big problem I have run into is when I am "partners" with someone with zero money at risk in a project, it rarely turns out great for me.
Erik but that depends. I am loiking for a partner for multiunit prop. I will do all the heavy listing. In site managment/maintanance/rehab. Will make sure the property is profitable and stay stable for years to come. Equity is splitted but if property is ever sold yoy get downpayment back + equity