I do not have a lot of cash but I do know a lot of people that do and other investors out there but I would like to partner on some deals with those people.. My family owns a mortgage brokerage company. I am an LO and a real estate agent. My proposition would be to partner on a property deal. I would run the mortgage for free at 0% origination charges (getting us the best below market interest rate available). The investor would front the down payment, we would hold title as tenants in common as I would be on the mortgage as well. Therefore, holding 50/50 ownership, I would be responsible for finding tenants, constructing lease agreements, receiving payments, handling any issues that arise, and going forward we would split any costs above say $500. Am I putting enough sweat equity in to compensate for the lack of monetary contribution upfront or is that a fair partnership? Thanks in advance.
@Nicholas Catchur I see it is your first post welcome to BP.
What is fair is simply a mater of negotiation. Whether this is fair in part depends on the quality for the deal. If I put up money and can make a 20%+ return on investment then that is a good deal for me. If I make 6% and I am counting on your that is a risk I would even consider.
The above assumes you are finding the deal. If I am finding the deal I am going to tell you to take a hike.
You Essentially agree to be the landlord but have no landlord experience. I don’t see the lending part being that helpful either .That is scary , I don’t know anybody that would park their money with a newbie self management fella without experience who’s managing their asset / money