Updated almost 11 years ago on .
All out of capital, sooo syndication?
Hey BP!
I've been lucky to find another great rental for my buy and hold strategy under contract right now. Using a little basic math and intuition, I know that after this deal I'll be stuck on the side lines for a while until my RE and personal income can refill the capital coffers for the next acquisition....unless.......unless there was another way!
Here are my thoughts:
Friends and acquaintances have started noticing what I'm doing with REI. I've shared my thoughts and investing history with them and started getting positive feedback about wanting to partner in future deals.
Here's my question:
How do I make the leap from being equal equity partners to a syndication where I supply the deal and knowledge and the down payment is supplied by the partners? #AskBP
What would you consider a fair way to structure the deal for all involved?
I tend to think that some sort of syndication where the cash partner brings half the down payment, and loans me the other half. The loan repayment is to be structured all cash-flow goes to the cash partner until the loan is paid off. Once the cash loan is settled, the property ownership is split 50/50 and any future cash flow is split the same.