Partnering with Grandpa
I have an opportunity to possibly purchase a duplex (my third and fourth units in as many months) here in my hometown, but I’ll need to partner with my grandfather in order to make it happen. He would provide the down payment, and I would manage it.
Grandpa can be pretty old timey and controlling, and really not always very pleasant to work with; especially if there’s money involved. But I showed him my first property, the numbers, my Cozy account, how I was screening tenants, my leases and applications, bank accounts (showing I was running it separately of my personal finances), and some bigger pockets calculator results.
He’s very excited to go in with me and has pretty much told me to find something and make it happen. His only request was that I take out a life insurance policy equal to my half, basically, or equal to what he loans me if we don’t actually partner, and make him the beneficiary.
I can respect that request, but as I’m 27, I was curious how you guys may structure something like that? Some other options? I’m open to any and all ideas, I just don’t love the idea of my cash flow basically getting swallowed up in insurance premiums, although I’ll admit that to this point I haven’t priced anything.
Thoughts??