Using a co-signer for an investment property

7 Replies

Hello everyone, I have a question and hopefully I can get some advice on this. I’m planning on buying a multifamily, 4 units. I’m using a co-signer because I’m not currently working, so obviously I can’t get a loan under my name right now. I do have good credit and the money for the down payment. I don’t know what to offer to the person who’s co-signing for me. Is 1% of the rent fair? That would be about $200-300 per month. Any advice would be greatly appreciated.

Would this person be a partner or just a co-signer for the debt? Either way, depending on your relationship with this person, I would need a whole lot more than $200-300/month for exposing myself to the that kind of debt. I would be looking at 3-5% personally, but I would need more numbers to know for sure. 

@Maria Luna   Agree with Patrick's post, no way I would put my credit and the possibility of being foreclosed on for $200-300 month. 

As a flip side of this, I once partnered with someone with them putting in the down payment and I put the loan in my name.  We split everything 50/50.

@Patric Daniel,
The person co-signing is a friend of mine.
The building is $315,000. 4 units, and each unit rents for $800.

@Patrick Daniel
This person is only going to be a co-signer, not partner.

I agree with these other guys. But to be honest, I just don't have enough trust in people to where I would do this for someone. You have one hell of a friend.