Best way to compensate someone that loans the down payment

4 Replies

So has someone used money partners for the down payment only. I’m not sure what to offer someone that is interested in investing with me as far as them putting the down payment on a purchase. They would not be signing a loan or anything of that nature. Should I offer a higher interest-rate on the money they put down? This would keep things simple. I’m not a huge fan of co-ownership, Unless it’s a spouse.

If anyone has experience with this sort of arrangement or recommendations please chime in.

Originally posted by @David Avery :

Yes, give them double interest at least.  Maybe a gift certificate at their favorite diner also.

You want them to invest again if needed.

Good luck

Sounds good thanks for your input. 

@Account Closed Great insight! The last person I borrowed money from I gave 8% and they were ecstatic. They did not want me to pay them back within a short period of time they wanted it to give them interest at that rate for a number of years. So it helped them as well as us be able to use their funds to make money for both parties. If they had more I’m sure they would be glad loan more. 
We service their note through a note servicing company that pulled the Money for the monthly payment out of our business checking account every month and deposited into their’s. That was our idea not theirs, but I wanted them to have as good of experience as possible. We even covered the note service in fee 100%.