So I have found a partner who will be providing all the cash upfront for the down payment and closing costs. How do I pay back this partner for their cash? What strategy have you used when using a partner? What kind of return to they make on their investment?
I recently brought on a debt partner who provided $300k in cash for a 5 year, unsecured note at 8%.
You can repay them with the BRRRR method. Buy, rehab, rent, refinance, repeat. Assuming that you can add value to the property, you should be able to refinance the property in 6 - 18 months and then pay back the investor.
Hope this helps,
@Osama Mayassi Did you ask them what their expectation is? What kind of return they were looking for and how long they were looking to leave the capital out?
A lot of this depends on what type and size of property you’re talking about, short or long-term hold etc.
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