Kalamazoo, MI · Member since 2016 · 10 posts · 7 votes
Hi All,
I am looking at purchasing my third rental property in Michigan and have an investor who will put up the down payment. The purchase price is $350,000 and the investor will put in $70,000. He will take 20% of NOI off the top, I will take 5% of NOI as a management fee, and the remainder will be split 50/50.
Does anyone have experience with a similar situation regarding taking out a mortgage? Is there a way to have only myself on the mortgage so he avoids liability and not count his $70,000 as a gift?
The lender will not make the mortgage out to a business so we cannot have him loan it into an LLC and then take out the loan to the LLC.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Assuming you want residential 30YF, you basically either put him on the mortgage and on title, or he lends you the money as a private mortgage secured by some other real estate.