Partnering on a FHA loan

1 Reply

Hey everyone. 

I was talking to a family member who is interested in investing in real estate over the weekend and the conversation of partnering came up. I have the real estate knowledge, rehab knowledge, and I also have the capital for about a 10% downpayment. He has no RE knowledge, or enough cash for the downpayment, but he wants to learn and is willing to put some sweat equity. You're probably asking.. so why would I want to partner with him? well I already have an FHA loan so I couldn't get approved for another. Partnering seems like a pretty good way to get financing for more deals. With an FHA that only requires 3.5% down, it becomes much easier. Im thinking, I can put the money in for the downpayment and we go 50/50. With the right deal this seems like a win win. I grow my portfolio, and he gets to start his investing.

I know what most people look for is a partner who brings in the money, or knowledge but considering all he can offer up front is the FHA loan approval, what do you guys think? Is this partnership a good idea? In a way he's making the money available, so I personally feel like it is but id like to hear your opinions.

Any advice or tips appreciated. 

@John Bernabel

If you have the money and the knowledge.. I would reccomend him to maybe find leads for you, This will give him experience in analyzing deals and he will be adding value to you. I would not split 50/50 unless he adds value, but again that's just my thought. 

How can he offer the FHA loan approval? You are the one pre approved correct?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here