My situation.... i currently have 2 mortgages in my name. Credit score in/around low 700 but debt-income is too high to purchase a property on my own. I dont want to sell the 2 properties i have nor tap into the equity I would like to try to find other investors for a buy and hold. If i were to find another military member willing to go into a deal like this what do you see as far as the pros/cons of the deal? What would i have to look out for?
You need to find a good partner where you can provide the value and they can provide the money.
In these situations, I think a 60/40 split is nice, and 60 goes to the money partner. You do all the management, find the deal, and make it not his/her problem. There are other things you can do, like help them with the downpayment, etc. but you should definitely compensate that partner for taking the money risk that you cannot.
As for another military member, I imagine that would be a good target. Ideally someone out of the area who plans to be hands off (and therefore recognizes your value).
I assume the other two are rentals ? how long you had them. I know some banks (USAA, NFCU) will work with you if you can provide documentation that the 2 properties are providing income to offset the debt service (tax returns, leases). you can get up to 4 loans before it starts getting tricky
60/40 works. just would have to find someone out of the area. id be more of a property manager.the other 2 properties are rented out and i claim one on my taxes but the other my sister claims. i just started reporting the income for the 2nd property this year so im hoping by next year if i show a 2year history on both ill get approved for another loan. Right now im living in Nebraska and im itching to buy something now and see
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