Updated over 11 years ago on . Most recent reply
Multifamily and investors
So, I have a hard time understanding how it works with investors, I mean, what is the basic steps to pay them/pay them back ?
1. I Find a property
2. Costs 100.000 and I need a DP for 30.000
Q 1. How do I pay back ? with intrest ? or do I pay back their downpayment+intrest ? example: I pay intrest from start every month, then refinance and pay back their Downpayment and keep paying intrest to them forever as long as I own the property ? Or are they out when they have gotten back their downpayment + 10 % ( example ) and then they are out ?
Q 2. If I pay 5 k and 5 investors bring up 5 k each for the downpayment. Do I split the whole buildings value into 6 ? 100.000/6 ppl = and we own 16.666 % each ?
If someone could explain for me how it works when u bring investors into a deal from start to the end, thx !