Updated over 9 years ago on . Most recent reply
Is this a Deal or a Scam? Heputs in nothing but wants 50% equity
Hello Everyone, I was just given a proposition to partner in deal for a house in Irvington, NJ ( a high rental area), 3bd /1bth SFR, for $69K, he puts in nothing but "experience" and he'll handle cosmetic repairs and the fixes around the house. Now I thought he was bananas for asking that for a "partner" deal but maybe you guys can see something I don't. Another note: I will do the refi to get the money that I put in back in 3-6 months. He said he wouldn't request any money from the re-fi but would want 50% of the rental income (rental for this house can go up to $1,300) and 50% equity of the house. Is this a good deal? If so, kindly advise.
Many Thanks,
Nadirah
Most Popular Reply
#2 General Landlording & Rental Properties Contributor
But am I being selfish?
You are not being selfish if you do not feel the deal is fair. If you have the money to buy the property you have no need for a partner. You need to take a leap of faith if you want to invest and get in there and get your hands dirty. If you choose to grow in the future and do not have the money you can then partner with others that do have money or the ability to get a mortgage.
This guy brings nothing to the table except his contracting skills which would be far better suited to a 50/50 flip partnership not a rental.