partnership logistics when financing...

[Jason Porras]

Hi all, first post on BP here!

I've scoured the forums and haven't quite found an answer to a question that recently came up...

I'll be partnering on my first deals and I would bring the work (finding deal, getting transaction closed, working with contractor/PMs, etc.) and the credit (loan would be in my name si ce I'm the W2 earner) while the partner would put up the money for the down payment. However, my mortgage broker is saying that the money needs to come from whomever is on the loan, and that gifts and loans are not accepted.  This seems contrary to how I've heard a lot of people structure partnerships, and puts a kink in my plans.  

Is this similar to what you all have experienced or are there other brokers/lenders who have more flexibility in that regard? If so, could you recommend? I'm in Austin, TX.

Thanks!!!

[Grant Shipman]

If you'd like a confirming loan (i.e. conventional, fha), then here's four ideas 1) have your partner as a cosigner on the deed of trust (mortgage), 2) deposit your partner's money in your bank and let it season for 60 days, 3) document the gift: have your partner give you the money and have your partner sign a document that says the money is a gift and not a loan, 4) secure the money: have your partner loan you the money and write in the promissory note that the loan is secured by something you own of high value (like a car) or secured by taking second position on the property. Talk to your bank and other mortgage brokers about which of these or other options will work ahead of time. then choose the one that works for them that you most like. I hope that helps! keep at it- it's worth it!