I'm considering beginning a partnership with a friend from college who has a few rental properties, duplexes, and homes, in 3 states. I would appreciate direction concerning the equity our partnership should have. He would be submitting the downpayment and closing costs for our property. I would be getting the loan.
Should I have him on the morgage?
What % equity is fair given the above arrangement?
I will be drafting a partnership agreement as suggested in the post below:
Bhaskar, I'm starting a partnership as well with a friend and we're going in 50/50 in everything. We'll each put down 50% of the down payment, and each be on the loan together.
This will be for both flips and buy and hold rentals.
Hope that helps.
Brooks - I am looking to do something similar with 2 partners. But I'm curious if there were any lessons learned you could provide here and hopefully answer my shotgun questions...
I'm assuming it makes sense to use the same lender?
Do you both have similar credit scores and thus would receive the same rate?
Was your lender able to combine any redundant fees or provide a discount on the underwriting?
Have there been any issues at closing?
Did one of you have to be a primary on the loan? After you close, did you transfer to a LLC/LLP?
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