Looking for an Investor Partner Irvine, CA Home Purchase

Orange County, California
Creative Real Estate Financing
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Looking for an Investor Partner Irvine, CA Home Purchase

Account Closed
Member since 2025 · 5 posts · 1 vote

Hi everyone

I’m exploring a creative home buying strategy and looking for the right investor to partner with me. I’m looking to establish equity and purchase my family a home in the neighborhood we’ve been renting in for the past 7 years. We’ve been trying to save, but the rapid explosion of home prices has made it much more difficult. Especially in this market.

I’m looking to purchase a $1.5M–$1.8M family home in Irvine, CA and I’m looking for an investor to contribute $500-$750k toward the purchase. In return, I’m offering:

Lien-secured investment (not co-ownership)

1% annual fixed return on the investment

10–20% share of future home appreciation (paid out upon sale or refinance)

Principal returned at exit (sale or refi)

I’ll be contributing $500K of my own funds and taking out a mortgage on the remaining balance. I’ll be the sole homeowner and mortgage holder and will occupy the property with my family of 4. The investor is secured through a formal lien and would receive passive income and a long-term upside, without day-to-day involvement.

This structure gives the investor a low-risk, asset-backed return with a solid appreciation play in one of the most desirable markets in Southern California.

If you’re interested or know someone who might be, I’d love to connect and share details.

Thanks in advance!

-Jonathan 

edit: I've gotten a few comments about this and I'm of course opening to suggestions of how this can be more enticing to an investor. My ultimate goal is to find a creative solution to purchase a family home in the neighborhood we've lived in for the past 7 years with neighbors and schools that we love.

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Eric Gerakos
Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
1y

Hilarious. You’re offering a “1% annual fixed return.” Then only “10-20% of future appreciation.” You’re basically asking someone to buy you a $1.5M home for free. That’s a creative strategy all right.

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  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    1y

    Hilarious. You’re offering a “1% annual fixed return.” Then only “10-20% of future appreciation.” You’re basically asking someone to buy you a $1.5M home for free. That’s a creative strategy all right.

    2Reply
    • Account Closed
      OP
      Member since 2025 · 5 posts · 1 vote
      1y

      @Eric Gerakos 

      hardly for free. A $750k investment into a market that is pretty much guaranteed to go up 4-7% every year. Annual dividends paid on top of that, as well near zero risk on their investment. I would be handling all costs, taxes, etc.

      My math on a 4% YoY appreciation (which is modest for Irvine), plus dividends, would equal to about 3.5% return for the investor and no risk of their initial investment.

      Open to suggestions. What do you think would be more appealing? Larger share of appreciation?

      0Reply
  • Dan Ikon
    Rental Property Investor · Member since 2025 · 85 posts · 35 votes
    1y

    Yeah, the offer does not look too appealing to a potential investor, but what do you think it should be?

    1Reply
    • Account Closed
      OP
      Member since 2025 · 5 posts · 1 vote
      1y

      @Dan Ikon What would you consider to be more attractive? Should I up the shared appreciation to match the initial investment (ie: 40%)? I felt the shared appreciation was fair considering the near zero risk of the initial investment and none of the tax, maintenance, or any other costs associated with home ownership.

      0Reply
    • Dan Ikon
      Rental Property Investor · Member since 2025 · 85 posts · 35 votes
      1y
      Quote from @Account Closed:

      @Dan Ikon What would you consider to be more attractive? Should I up the shared appreciation to match the initial investment (ie: 40%)? I felt the shared appreciation was fair considering the near zero risk of the initial investment and none of the tax, maintenance, or any other costs associated with home ownership.


      You keep saying there is no risk associated with the initial investment, but there is always a risk, even (or especially) in high-end markets. I'd say a 5% dividend and 50% share will bring attention. 
      0Reply
    • Account Closed
      OP
      Member since 2025 · 5 posts · 1 vote
      1y

      @Dan Ikon I could get behind a larger share, but a dividend that high is not only extremely rare in general, it would cost me over $3000/month on top of the mortgage.

      0Reply
  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    1y

    @Account Closed you have other options available to you.  I just helped another buyer close on an assumable loan at 2.7%.  There are homes in your area and price range.

    Good investing...

    [email protected]949-625-4533
    2Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    Wow. You’re offering 3.5% return when the bank is only offering 4.5% guaranteed returns? With government insurance? Where do they sign up? What if you love it and don’t sell for 20-30 years? 

    Honestly I don’t think you’ll get much interest even if you offered 6% interest, but maybe if there’s a 5 year balloon? (The shortest allowed by Dodd-Frank because you’re an owner occupant, another downside for the investor.). I got desperate for a buyer in January and did 7% with 25% down and a 5 year balloon. But that was in first position and I was desperate. Maybe you can find a seller just as desperate who will finance for 5 years at 7% with your $500k down making up a 30% downpayment?

    You need a convincing story why you could go to a bank, to show your credit worth, but you’re willing to pay them an even higher return. Otherwise just use the bank. 

    0Reply
    • Account Closed
      OP
      Member since 2025 · 5 posts · 1 vote
      1y

      @Bill B. 

      Thanks for the feedback., I expected a mix of responses, and I appreciate your candor.

      You’re absolutely right that bank rates are high right now, and for many investors chasing fixed income, 5%+ risk-free from a CD or T-bill is a no-brainer. But this opportunity isn’t competing with those. It’s for someone who’s looking for equity-backed, lien-secured real estate exposure in Irvine, and doesn’t want to be a landlord or active partner.

      You bring up a valid point. owner-occupant structures are more complex post–Dodd-Frank. That’s why I’m leaning into usage fee models or structured equity positions, not trying to mimic a consumer loan. The whole point is to avoid turning this into a traditional note that trips compliance issues.

      I’m already bankable for a $1-1.1M loan, but not $1.75M. So the gap I’m solving for is very specific. I’ve got $500K cash, strong income, and 800+ credit and no debt. What I don’t have is a lender willing to stretch to $1.25M on an owner-occupied property and even if they were, it would be outside of my budget. That’s where creative capital comes in. not as a replacement for the bank, but as a bridge to ownership with long-term upside.

      If someone just wants 5–6% guaranteed, there are safer ways to get it. But for the right investor who wants a lien-secured, hands-off deal tied to SoCal appreciation and backed by someone with real investment in the game, this could be a fit.

      It's not for everyone but then again, good partnerships rarely are.

      0Reply
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