All Forum Posts by: Anthony Melillo

I apologize for the confusion. The 10k is my portion of down payment. I am unaware of regulations on loans if I were to live there. The house is going to be purchased with cash. The amount I owe my investor is off the books. The 25% in 'equity' that my investor would own on the house was his idea to lower the amount I owe him. Plan is to live in this first property, fix it up and start buying properties in the area to either flip or rent. I Handle all rehab. Investor covers financing. Now sure there is a ton to iron out and loads I need to learn. I've heard this is a great place to get insightful information . I am a Newbie when it comes to lending and real estate. Taking in everything I can in the short time I've been involved. Good day

New to biggerpockets. I am working with a neighbor friend who is lending 2/3 of the money to purchase my first property with cash. I plan on living in this single family home for 4-6 years then selling or possibly renting. I recently submitted an offer of $26,600 on a foreclosure and waiting for response. If accepted the deal would go as follows. I give my investor $10,000 towards purchase. Investor buys 25% of purchase price as "equity" $6,650. The total I owe investor is $9,950, which we agreed upon a 10 year note at 6.5%. The property needs $15k in rehab, investor pays 25% of rehab costs and I pay 75% out of pocket. I am doing all rehab myself. When the house is sold my investor gets 25% of the profit. I would appreciate any input on this deal. Cost of this property after repair totals at high end $43k (40 square foot) on 1064 sf house. Comparable houses in area being sold at low end of (50 sf) = selling price of this property at $53,200 low end. Any advice, comments or input is welcome. Good day