I am a new investor in real estate and I have a friend who is interested. I have great credit and work history, but no money. My buddy has no credit, but is able to put down 20% on a few deals that I have found. However, he is hesitant due to the fact that it is his money that's tied up. Is there a way that we can structure this so that we can purchase a rental and have it be a good investment for both of us?
Some things to consider - who is going to manage the rehab, find/manage the tenants, deal with the bills each month, deal with maintenance issues? It sounds like you're finding the deal(s). If you're taking care of the aforementioned items and anything else that comes up, and all he has to do is put some money down, a 50/50 split is a great deal for him. If he's not willing to do that, he brings nothing to the table, and you need to find someone else.