Privately funded down payment

[Dee Xixi]

I have a coworker that have 40k in bank to buy his first home next year. The other day I was telling him about investing with me which he opens to. Therefore I am looking for advice on how to present him the investment opportunity. I have a 4plex that I put an offer for 185k. I figure to use his cash for downpayment. I have 10k that I can bring along just for any unexpected circumtances.

Goal buy and hold
income: $2100 ( incl 7% vacancy rate)
expenses: PITI------- $1200Please help me on structuring the offer to him. Thanks

[George P.]

Originally posted by Dee Xixi:

I have a coworker that have 40k in bank to buy his first home next year. The other day I was telling him about investing with me which he opens to. Therefore I am looking for advice on how to present him the investment opportunity. I have a 4plex that I put an offer for 185k. I figure to use his cash for downpayment. I have 10k that I can bring along just for any unexpected circumtances.

Goal buy and hold
income: $2100 ( incl 7% vacancy rate)
expenses: PITI------- $1200Please help me on structuring the offer to him. Thanks

It'd be stupid of him to commit the money for long-term if he needs to use it next year. Suppose you make this transaction happen, and next year he comes to you and says "it's all cool, but I need my 40k back, we're starting to look for a house" - what will you do?