Need Advice about potential investor
A mentor of mine offered to take 2 of his single family homes and out them in a "new company". His properties are paid off. My husband and I could also contribute a property to the new company and using those properties as collateral move forward with BRRRR'ing into small multi family class B and C properties. We would enter into an operating agreement and my husband and I would be the operators. We are currently renting 2 single family homes and looking to Branch out to small multi family. I'm reluctant to enter into this agreement because I'm having a tough time seeing the benefit to us other than the access to extra cash. We would essentially be the boots on the ground and my mentor would be a a semi active participant. Would it make more sense just to ask him to invest with us? He is someone we would like to work with in the future, maybe when we're more established in multi family. Our ultimate goal is to be the GP of a syndicate. Looking for creative strategies that help us grow quickly with low-ish risk. Thanks!