Rental Property Investor · Saint Louis, MO · Member since 2014 · 5 posts · 1 vote
I have convinced a partner to invest with me. The partner will provide the cash and I'll find the deal and manage the deal. Buy and hold. My partner would be the one qualifying for a fha loan on a two plex,three plex, or four plex. My business partner will live in one of the units also. How can I setup a partnership in this case when only 1 person would hold the mortgage?
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
9y
@Derrick Thomas, I'm not an expert here, but I don't think you can do that with an FHA, since it requires owner occupancy and you won't be living there.
Normally, it would be possible for one partner to guaranty the mortgage, but both be on title (or better yet use an LLC), but I think the FHA loan is going to trip you up. Anyway you can do traditional financing?
Concord, NH · Member since 2017 · 25 posts · 16 votes
9y
I do not have much to add as to the specific conditions for the FHA loan you will be aiming for. I do, however, have some thoughts on the initial partnership agreement. Keep in mind, that this is not legal advice nor am I an attorney. Having said that, partnership agreements generally carry great weight. You can structure them as you wish as long as. ... after that you should talk to an attorney. The investment in an attorney upfront will pay off particularly if you have serious money invested or time invested in this project. Unlike many other areas of the law, the uniform partnership statutes are generally easy to understand. It may be worth looking it up online for examples of things you should be considering moving forward.