Purchasing my first investment property with his terms
Hi Everyone,
I need your help. I am planning on a 2 family with a FHA loan. I plan to live in one of the units. I have the 3.5% of the purchase price. I was informed by my mortgage consultant that I would need to have a total of about $16,000.00 which includes down payment, escrow, property tax, closing cost just to name a few.
I have a friend who is willing to be a silent partner in which he would loan me $10,000 on these terms.
1. His name will not be on the deed/title.
2. He receives the full amount of the rent for the 2nd unit until he gets back his $10,000 that was loaned to me (over a 1 year period).
3. After he receives the $10,000 he will continue to collect the rent on the 2nd unit.
4. Return on investment for him. (ROI)
What he says I will gain:
1. Owing a two family property.
2. Equity
3. Tax deductible/write offs
Does this sound like a fair deal?
All answers are appreciated.
I apologize if I'm not too savvy with all the real estate terms.
Thanks in advance.
Most Popular Reply
Try to do 'Seller Concessions' with the seller -- that is -- you roll your closing costs into the mortgage. Ask your Realtor about this and do a little research first so you understand.
I did this with my 2 family and went to the closing table with ~$5k. I did $9k seller concessions so its in the same ballpark as the deal you are doing.