Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 years ago on . Most recent reply

User Stats

25
Posts
6
Votes
Isaac J Mork
  • Rental Property Investor
  • Bellingham, MN
6
Votes |
25
Posts

How do you structure deals with investors?

Isaac J Mork
  • Rental Property Investor
  • Bellingham, MN
Posted

I recently saw a youtube video with Cody Davis talking about how he used investors to buy multi unit building

The math was like if he could raise the rents $83/mo per unit on a 6 unit building at a 6% cap rate it would add about $100,000 of equity.

He mentioned something like he needed 90k and the investor could double their money. That's kind of how he set it up.  I may be wrong but I am assuming if he missed a payment the investor would be entitled to that $100k in new equity.

Now I am wondering how are you structuring the deal with the investors? does that new $100k in equity get a cash out refi and payoff the investors? Are the investors a 30% partner on that property forever?

What resources are out there with how to structure deals like that?

Loading replies...