"Sharing" a mortgage loan for Multi-family property

[Daniel Spaizman]

Hello all,

Would like to start off by both saying thank you in advance for any input you may have and, also, that I am a newbie to real estate investing, as my question will reflect.

After listening to several of the bigger pockets podcasts and reading blog posts, I am interested in moving towards investing in multi-family properties.  In order to find complexes with more units or complexes in more desirable locations, I'm interested in going in on the property with some friends.  Can someone point me in the direction of the best reading material detailing how one shares a mortgage?  Additionally, is it possible to take the mortgage out under one person's name and have the other folks contribute as private lenders?  If so, how does this work, from a tax perspective?  What are some things to consider when doing either?

Again, any thoughts, help, comments are very much appreciated.

Thank you for your time,

Daniel

[Michael Seeker]

@Daniel Spaizman - I highly recommend Commercial Mortgages 101 by Reinhard.  I had spent several years toiling away within the confines of Freddie/Fannie loans until I picked that book up.

A great way to structure what you're wanting to do is through an LLC. Set up an LLC, make each of the contributors partners in the LLC and outline the partnership structure within the operating agreement. I'd suggest having a lawyer draft or review this before everybody signs it and writes their checks. The next thing to do is call around to commercial lenders and see who the big players are in the area you're looking to invest. Talk to them about what you're trying to do and how it could fit within their underwriting structure. You will not find terms as good as a residential mortgage, but you will also find a lot less red tape.

Hope this helps!