I am looking for assistance in buying a multi-unit, basically half the downpayment, I see it as 3 year plan, in which I give you a fixed amount, monthly from the rental income until we refi, about 3 years and give you your original investment. Original Investment + 3 years of monthly income. I would appreciate suggestions on how to partner up or how to payback an investor
Its going to sound somewhat cliche but its up to you and the investor to decide there is no specific right answer. Hard money wants points and a large interest rate for a short time period 6 months to a year. Your friend might be happy with just helping you out in exchange for some equity in the deal. You might be able to get the seller to finance some of it for you. Start talking to friends and family that trust you first as they will likely be your cheapest scenerio.
Another alternative - the heck with everyone else. Who needs them? Think of ways to do it yourself first. Can you take out a 401k loan or a home equity line of credit? Want to make sure your going to get that money paid off quick throw some on a credit card.
There is no "right" answer but rather what your able to do in order to get the deal done. If you don't get it done nothing changes but if you do it could be a very profitable experience if the deal is good.
@Dan M. Thank you I really appreciate your time and advice. ￼
I think it all depends on the relationship with your partner. The more trust you have the longer the repayment period you can have before refinancing. Let me know if I can assist you with anything!
@Mario Morales what is the value of the investment is less in 3 years?
Yes I have thought of that , I would pay back investor the difference of whatever equity were able to pull out. However I wish I had a better solution for that. I feel I would be responsible and would have to pay the investment. I have the cash reserves to do it. Any advice you might have on that would be appreciated.￼￼￼￼￼￼
@Mario Morales there is not always equity to pull out after three years. There is a cost to refinance and there is no guarantee the home will appreciate