All Forum Posts by: Barry Allen
Barry Allen has started 1 posts and replied 2 times.
Post: Sweat/Capital Equity Partnership and Househacking
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Originally posted by @Lien Vuong:
What you could do in this is for one person to use their funds to purchase and you, as the sweat equity partner, would use your funds and skills to renovate where appropriate and form the partnership that way.
Thanks for the reply! My plan exactly, minus the renovation part.
I'm wondering if the value-added by a sweat equity partner without providing renovation would be still significantly compelling to the capital partner, while remaining worthwhile for me.
Am I correct to think it would be absurd to propose a sweat-equity stake larger than what a property manager's fee would be over the lifetime of the property? Quantifying what is realistic is where I'm getting tripped up.
Additionally, if I were to investor-occupy as the sweat-equity, numbers-wise I would assume a duplex would be less attractive than a 3-4 unit property.
Post: Sweat/Capital Equity Partnership and Househacking
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I've been planning and saving to start in real-estate via traditional house-hacking; however, I'll be moving to Boston for other reasons in the fall, where I'll certainly be priced-out of the multifamily market.
I have contacts who I'd like to talk about a potential capital/sweat equity partnership with, however, I would like to be as well-researched as possible before I do so.
I'm wondering: how rational is it to propose a capital/sweat equity partnership for a multifamily, where the sweat would initially occupy a unit? Are there any tips you might have for positioning this?
Having never heard of anything like this, I welcome any reality-checks, thoughts, experiences, or advice you might have to offer!