Having a partner for a deal
I'm working on getting my 6th door as a rental unit. Once I close on that, I'll have 3 single family homes and one triplex.
I met with a friend today and he asked me about partnering up on a deal. To generalize a bit, lets say he is the money person and I'm the hands on guy. I'm local and he's a few hours away.
What sort of partnerships are the most common on deals like this? Things I'm wondering, would be, is it fair for the money person to fund the down-payment in full and the hands on guy to do the management of the property?
What about a mortgage? If one is used, whose name does it go in?
I know Brandon and others have mentioned using a partner quite a few times in webinars and podcasts. However, for those of you that have used partners, can you explain how you do it?
Thank you.
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I'm curious as well on the mortgage end so I'm piggybacking here.
I will say that IMO the partnership you're talking about sounds very reasonable and common to me. A 50/50 split when you're doing the work and he's bringing the $ is something I've heard and read many times.
Not sure how long you've been at it but congrats on the 6th door.
The logistics of the partnership is also something I've not dug into as far as the legal entity of it.