Fair Deal for my investor and myself
I have a property that has a balloon payment due by the end of the year. I was expecting a full cash out refinance on a BURRR but the banks wont do the loan yet as I still have more work to be done.
We are considering seeing if a family member wishes to buy 20% of our project. Their money would be used to finish rehab as well as pay off the current lender. Once 100% complete the plan is to cash out 70% LTV and then split the proceeds 80/20 with my investor. After that the investor would retain 20% equity in all future rental income and property value. Is it that simple or am I missing something? Is this a fair deal for both sides? Thanks! Existing loan 55K Current Value 310k rents 3250/ month gross once rented which will be starting in about 2 months. We already have multiple people interested in renting. So the numbers are fairly safe. IDK