Providing 50% DownPayment + don't want to be on Mortgage - JV?

[AJ Dhillon]

I am sitting on some money I wanted to invest with some partners, but I'm not sure how to structure the partnerships.

1) We will both provide 50% of the down payments

2) I wanted to make the purchases without myself being on the mortgage or title. Partners income can qualify for the mortgages alone.

Is there any way to structure a deal like this? 

I know in most JV's there's a money partner and a working partner, but since I am giving 50% of the down payment I am wondering how we would go about doing this and how I would protect myself. I don't want to be on the mortgage because 1) I don't have T4 income and 2) I want to get as many mortgages as possible once I start paying myself from my company.

[Michael Ealy]

@AJ Dhillon

You can be on title but not on the mortgage. You want to be on title to protect your interest in the property. You can do this by having your partner deed the property to a land trust where you and your partner are beneficiaries of the trust. And this can be done after he buys the property in his name and gotten a mortgage on it.

However, one issue though that your partner will encounter is that the bank will want to see your partner has the cash and it's seasoned for 3-6 months: meaning the cash is in his bank account for that duration of time.