How to fund and finance a deal with partners

How to fund and finance a deal with partners

Denver, CO · Member since 2018 · 8 posts · 2 votes

Hey everyone,

I am going to be partnering with at least 2 other people for my first deal, which will likely be a flip.  My experience trying to get financing with a new company is that it can be extremely hard to get approved.  I am new to real estate investing and have no idea how financing a deal with three partners would work.

We are hoping to get conventional financing for our deal and between us put up 30% cash for the down payment.

Should we form a LLC and finance the deal through the company? Or can we each get approval for financing for a third of the deal? Have any of you partnered with others in this way?

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  • Lender · Grand Rapids, MI · Member since 2018 · 703 posts · 446 votes
    7y

    Do any of you guys have experience? Reason I ask is you can qualify for Fix and Flip loan Line of Credit programs and put the deals in LLC. Need at least 2 properties to qualify.

    Or you can start with an individual flip loan and build up your experience, then switch to the line of credit.

    I would start an LLC and try hard at getting the deals approved thru the LLC

  • Dallas-Fort Worth, TX · Member since 2018 · 19 posts · 3 votes
    7y

    Following

  • Denver, CO · Member since 2018 · 8 posts · 2 votes
    7y

    Thanks Tim, none of us have any experience, nor do we have 2 properties to qualify. For now we will set up the LLC and give it a shot.

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