How to Buy and Hold with Other People's Money

[Pete Woelfel]

Hi All, 

This is my first post on this forum, if this question belongs elsewhere please let me know.

I'm in the early stages of building a portfolio and would like to start leveraging my experience and bringing my knowledge and hustle to the table while someone else brings the cash, and I have some interested investors.  I'm really struggling with how to structure the deal and would love some thoughts from all of you smart people out there.  

Have any of you done a partnership where you've done all the work and someone else has brought all the cash for a somewhat turnkey buy and hold?   I know I can meet the investors return goals with plenty left over for me while still funding a reserve and , and I know the investor does not want the mortgage in their name which is fine with me because I'm in it for 5-10 years or more.  I'm wondering what people have had success with as far as the length of the agreement (How long does the investor need to keep their money in?) , how contracts have been structured to handle repairs, vacancy, appreciation/depreciation, etc.

Thanks in advance for any thoughts!

[Erik Anderson]

@Pete Woelfel There are a lot of different ways to do deals like that. First off you need to do the math yourself and have a solid understanding of what your investor is looking for in time and volume ie.(%) I look at an offer price first, then my interest payment, then the: insurance, termite bond, managing costs, property taxes. All added up you see where your rent HAS to be. If that is not realistic something has to change. You want to be mutually beneficial but the numbers have to be right.