All Forum Posts by: Clayton Anderson

Hello,

I am looking to make my first real estate investment purchase with a partner and would like some advice on how this should be structured. 

We are both relatively young (24/25) and have well paying salary jobs and good credit, but would both greatly benefit from each other in splitting the down payment. We are looking for duplexes in the $250k-$350k range in Columbus, Ohio, and would live in one side together and rent out the other half. We are also going to be 50/50 partners in all aspects. 

If you were doing a deal in this way, how would you structure the purchase? Should we first set up an LLC and run everything including the purchase through that entity, or is it easier to jointly apply for a loan and have legal documentation outlining the partnership, or is it even simpler to make the purchase solely in one of our names, and have legal documentation outlining our agreement? Is there anything else I am missing, or any other advice you would have?

Thanks,

Clayton

@Ed W. I saw that and am planning on attending!

@Justin Taber I would definitely be interested in talking soon. If you are planning on attending the networking event on 3/16 we could plan something then.

My name is Clayton Anderson, I am 25 years old, live in Columbus, OH, and am looking to obtain my first real estate investment! I have an undergraduate degree in finance and am currently working towards an MBA specializing in finance. I have a great career with a large financial institution, but I would like to begin developing an investment portfolio in real estate. I think what I would like to do is either rent out a single 2-3 bedroom home or live in the unit and have a roommate or two. 

My mother is a relatively new real estate agent but is working under a very experienced Columbus agent that also holds investment property, and a good friend of mine is a loan officer with American Eagle Mortgage, so I have begun assembling my "team". I have a very high credit score and almost no debt (car payment only, almost paid off), so I already have a pre-qualification letter for $350k and am relatively familiar with FHA loan options for first time buyers. I am confident I could do a 5% down payment on a $250k property for a lower rate conventional loan, but any more than that would be a stretch.

I have taken on the search criteria of "would I want to live here / how much rent would I pay for a month of rent here" mentality which includes a location close to downtown so I would have the option to rent it all out or live in it with a roommate. I have been browsing the MLS database for a few months now strictly searching for duplexes to live in one half and rent the other, but haven't found any I would personally want to live in, and am now extending my search to single family units.

If anyone has some advice or would like to connect, I would greatly appreciate it! 

Clayton