We're relatively new here this is my first post.
We put an offer in recently on a small duplex. We don't know yet if it's excepted but i am feeling hopeful. Its a cash offer, using mostly our money and funding the rest with a family member. The offer i made to them is to be partners on the house for 2 years. They are putting up less than half the purchase price and i offered 12% return per annum and the initial investment returned at the 2 year mark. The return seems a little high but people work hard for their money and if it makes the deal happen then its justified to me.
Has anyone else done a deal like this? This is in its infancy at the moment but i know the future is going to have lawyers and cpa's involved to insure everyones interests.
Any info and advice greatly appreciated.
@Ben A Martin this sounds like a traditional "owner/seller financing" deal. Many investors don't use lawyers and cpa's but I guess you could if you wanted to. Your title company can give you some guidance but just search for "owner financing" posts here on BP. There are lots. Good luck!
Thanks for the response, Andrew. Just to clarify, we are specifically seeking advice regarding the fianacing contract with the family member investing in the deal. We will fully cash the current owner out of the property. Just wondering if there is a contract others have used, how to structure the title to ensure the other investor receives a tax benefit, etc. Any and all information is helpful!
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