First deal Jitters- splitting up equity
I am in the process of completing my first real-estate deal!! I know… exciting right?
I am partnering up with my parents on this first one. They have agreed to split the Down payment, closing costs, and any up-front capital needed to make the property rent ready.
So we would be 50/50 down-payment, 50/50 equity split, and then an 80/20 cash flow split in favor of me because I will be handling all management.
For this deal to work, what would the lending process look like? Would we both have our names on the mortgage? (My parents have a better credit score than me, so maybe only having their names attached to the mortgage would be best?) If I did this, what legal document would show that I have 50% equity in the property?
Thank you in advanced for an advice given!!!