My partner and I have about 50k each to invest. I have never financed a deal with a partner before.
What are a few creative or conventional financing strategies to Buy and hold/ flip when you have a partner or two.
What are some pitfalls I may need to look out for when implementing some of these strategies?
You could start a joint LLC to utilize for financing, split all contributions and profits 50/50. Have some sort of verbiage in your articles of formation stating its a 50/50 partnership.
I appreciate the feedback. What do you think the best type of financing would be. I been looking in the Georgia market and things are moving fast. It’s hard to compete if you don’t have cash. Is it possible to get lines of credit with a partner?
@Soniel Estime Cash is always king but you should consider hard money. Most lenders can close in <14 days if their process is right. Almost gives you as much as an advantage as cash if you waiver all other continegencies. Message me if you’d like to discuss, my lender is as good as cash and can close in a week or less.
Hey @Soneil Estime
I'm not a CPA or Attorney, I work in lending, but here is what I can suggest.
- Consult with a CPA or attorney to create an agreement especially when it comes to selling the property - This will provide a solution when it comes to how to "get out" of the deal if either party wants to sell.
- Set up a multi-member LLC - I'd suggest using or setting up a series LLC
- MAKE SURE TO GET EVERYTHING IN WRITING - have an attorney draft contract.
- If money is needed, decide in advance where it is coming from - if you would like to chat further about hard money, bank loans, or soft loans let me know
Hope this was helpful. Good Luck
Thanks so much for the information. Still discussing some things with my partner, I will definitely get in contact with you as things progress.
Thanks so much for the input, I think my biggest challenge right now is learning about the best financing options for different types of deals. I currently have a lender but he is a more conventional lender and can’t always answer my questions about financing options. I would love to get on a call with you an pick your brain if you have time?
@sonielestime, would love to figure out some creative financing for you. Just sent you a message on BP.