All Forum Posts by: Bassma Mancilla

I don't know if that would work for the loan's sake since the loan will still be under my (our) name anyways if we buy the property together (per my lender). 

The other thing I worry about is that she declared bankruptcy about 10 years ago. Not sure if that would affect our financing if she was on the loan with me (even though it was more than 7 years ago). 

Hi everyone, 

So, while shopping for financing, I've been told that for investment properties, I cannot use "gift" money. Really it isn't gift money, as it's going to be a partnership between a family member and I. They give me part of the downpayment, and I split any cash flow with them while I handle everything. I want to be the only one on the loan, as I want to protect her from any financial fallout in the even anything happens. 

Can I wait to close, and then have her send me the money? Or is this a problem if it's after the fact? The lender said my only option would be to allow the money to season for a couple of months and then proceed. What would you do?

Disclaimer: this is my first time shopping for an investment property so it's all new to me.

Looks reasonable to me! Rule of thumb is 2% of the purchase price is a good estimate for closing costs (which includes the earnest money deposit that can go towards closing). The costs do fall on the buyer unless the offer/deal includes the seller giving the buyer credits in the form of paying some or all of the closing costs. It all depends on what you offer the seller and how bad they want to sell their house. 

Hi Hao,

Just replying to this older thread to see how the Cleveland market has been treating you as it caught my interest as well. I'm hoping to buy my first property, and I'll be an out of state investor.