All Forum Posts by: Neil Aggarwal

I agree with you that it seems like a bad deal for the partner.

The only theory I have is the OP is assuming the value of the property will become much larger once it is fixed and operational and they are offering investors to buy shares at the larger value.  I would not do that, but there is a sucker born every minute.

I would form an entity where everyone get a share based on the size of their investment. And yes, make sure you do it through a lawyer.

The problem is the legal system in this country.  There is too many ways to get out of stuff.  You can get a judgement and record it but it can sit there forever.

You are buying the property for $70k.  You are asking a lender to give you $100k up front and trust that you will make repairs instead of walking away with a $30k payday and dumping the property on them.  That is a risk no lender I know will take.

100% financing is a myth perpetuated by people that sell seminars to newbies.

3% is ridiculously low.  If it is true, I will borrow several million from them and pay off my investors that I am paying higher rates to!

This site has a Marketplace section which might help.

20% is too high.  It should be 10-14% for private money.
Talk to some local real estate agents, they might know someone they can point you to.

Your credit, debt, and income.

Just to be clear, line of credit and HELOC are similar but not the same thing.

A line of credit is like a pool of money where you can keep pulling money out and in as you desire.  Typically, you will have more than one house as collateral for it.

A HELOC is typically on your primary residence. An ELOC is a loan against an investment property. Typically, you borrow once and return it back in monthly payments.

No money down is a myth purported by people that sell seminars.