How can I fund my next rental property?

[Luca Giani]

Hello everyone,

My business partner and I have successfully leased our inaugural rental property in Detroit, specifically in Warren. The property is generating a promising cash flow, and we are eager to acquire our second one sooner rather than later. We might even secure a third property. However, as we aspire to scale our business and expand our portfolio, we are seeking innovative ideas beyond our current resources.

One viable option that has been playing on my mind is involving investors in our partnership. This approach could inject additional capital and expertise into our venture, paving the way for accelerated growth. I would greatly appreciate your insights on how best to structure such a partnership.

Alternatively, if anyone has other creative strategies that have proven effective in scaling a real estate business and increasing the number of properties, I am all ears. Your valuable input will be immensely appreciated.

Thank you in advance!

[Nicholas Ruscio]

Hey Luca,

Congratulations on successfully leasing your rental property in Detroit. I would continue to implement the BRRRR Strategy to grow your portfolio.

BRRRR Strategy: Continue with the Buy, Rehab, Rent, Refinance, Repeat strategy to recycle capital and acquire more properties over time.

When adding an investor it is important to outline the level of involvement this person will have alongside contributing funds. Typically a property management company will take 8-12% of all property rent collected. If each of you are splitting the property 3 ways you could argue that you and your original partner keep 70% of the revenue while the investor keeps 30% due to the fact you will be running the property. 

Please feel free to reach out with more specific details about the property and we can work together to find a loan that best works for your team. 
Thanks