refi out of joint to sole?

Question

Can I purchase a property with a family member and refinance it from a joint loan to a loan in my name only?

I'm trying to leverage a family member to bring the down payment and then do a cash out to pay them back for the down payment.

Nick Versetto · Answer

Huy N. NICE! Congrats again.

Nick Versetto · Answer

that's awesome Huy N.!!! Congrats and good luck on the next one!

Nick Versetto · Answer

thanks for the update Huy N.  good luck getting through the loan.

Nick Versetto · Answer

thank you Huy N.

I need to find partners!

Joe Villeneuve · Answer

Not sure how to answer this when applying my partnership methods to your situation, without taking up two pages or more.  I'd be happy to discuss this with you at any time though.

Its basic structure involves 3 partners:

1 - Cash = They bring all the cash, have no mgmt or loan responsibility2 - Credit = They qualify for the loan, have no cash in and no mgmt responsibility3 - Management = They manage everything from the start of finding the property, through offers, negotiations, closing, etc...

Like I said, the full explanation would take up the entire page.  It works great though.  All the partners bring what they have to the deal, and combined the deal goes through.  Without any of the partners, something would be missing, and there would be no deal.

Andrew Syrios · Answer

You can do this sort of thing, but I would definitely put a contract together (even though they're family) that allows you to buy them out.

Nick Versetto · Answer

@Jonathan Alexander I didn't have to do this.  I ended up buying the home on my own.  I do plan on doing this in the future though.

Jonathan Alexander · Answer

@Joe Villeneuve @Nick Versetto

Nick - how'd did this end up going for you?

Joe - how do you structure your partnership deals with credit, capital, and management?

I own my home and one rental property and would like to by more to hold to rent.  I have an investor willing to put 25 percent down but won't put name on the note.  I have good credit score but my DTI is too high so i need a cosigner.  Problem is I'd like to eventually own the property out right and not co own it with someone else.  My thought was to get a cosigner, pay them a monthly fee until I can refi and get them off the note and then pay buy them out at a certain price i.e.. 3% of appraised value.... I thought this would be a good deal for the cosigner especially since they aren't having to put in any skin in the game except their name on the note.  They'd probably make in total 8k or so in 2 years or less.

What am I missing?  Is this not a good deal?  Is there something else I should be trying to do to get a cosigner?  Any thoughts would be greatly appreciated.

Thanks.

Huy N. · Answer

I just blog about it here @Nick Versetto

http://www.biggerpockets.com/blogs/4640/blog_posts/44426-how-i-shifted-my-mind-to-get-infinite-return---and-how-you-can-too

Huy N. · Answer

@Nick Versetto

Closing is scheduled for today! my partner signed a release of the deed yesterday.

Hopefully there will be no surprise is these last final moments....this is a historic moment for me! I do not own any mortgage on this property and will cash out some serious cash to fund another deal while still having positive cash flow and equity left in this one! Who doesn't like Real Estate!!