I currently have a deal in my cross hairs it's a small one that I could take on my own but I have a business partner that I would like to bring in on the loan. We have enough cash to do the deal at a 50/50 split. The problem that I am having is my broker is making it seem like a partnership would not allow the loan to be approved. Is anyone else having this problem and how could you get around this? I am sure I am not the only one who wants to buy property with a partner.
@Ken Wicks I did a deal once with a partner where the partner brought in the 20% down payment and I got the loan in my name, and we split it 50/50. The loan had to be in my name only, not an LLC, because it was conventional financing.
Hope that helps,
Yes it does. That is what I am figuring we will do. Do you have any tips on making an agreement with partners because you really cant make it official, especially if the bank goes in and sees the additions to my bank account before the loan goes through. They said something about a gift but is there an easier way to do this?
@Ken Wicks The bank will go back 3 months on all your accounts. They will want to know where you are getting the funds from and details of any large deposits. I have gotten around this by saying I was repaid for a personal loan that I lent out a few years ago. Is is only an issue if you are trying to be on the loan by yourself.
You both can be on the loan. Does the partner have poor credit? If you both are on the loan then it doesn't matter who brings money to the table. You could bring 100% of the funds to close or your partner, the bank doesn't care.
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