Updated over 2 years ago on . Most recent reply
Combining mortgages and finance partners
Since we got started fifteen months ago, we've closed on eleven units. We buy multi families in the northeast for long term holds, and so far our cash outlay has gotten a 15-18% annual return. So far we've used personal loans or bank loans for the down payments (and one BRRRR).
But now we have people who'd like to invest with us. We'd like to use their investments to cover the downpayment, and give them an equity position in return. The challenge is that local banks require any beneficiary with more than a 20% stake to be on the mortgage (even if it's held by an LLC). We'd like to protect our investors from that headache and liability. Has anyone taken partners but kept them off the mortgage? Thanks!