All Forum Posts by: Samer Jaber

Hi BP Community,

I’m looking into my first out-of-state multi-family partnership with someone that already has experience in the local market and connections to the operational teams required to make out of state investing successful. I am debating using my local lawyer vs. finding a lawyer in the state where the property is located. Is it too much of a hurdle for the Local, Esq. to review the local law? Obviously this depends on whether Local, Esq. is willing to do it (and whether there is a state-specific bar requirement just for this type of work), but I want an outside perspective first.

Thanks,

Looking in Baltimore

Wow. Good for you if that's the arrangement. It seems that the value he brings to the deal is worth a lot more than that. Since his name would need to be on the deed/mortgage there's plenty of space for things to go wrong, though. We always hope we trust family enough to be civilized an honor their word, but it's not like you'd be able to evict him since he'd be co-owner. Seems like having a good lawyer involved is advisable. 

I also had this idea and posted about it just last night. My other question is advice on how to make it worth my brother's time. Is free rent enough? How to split profit?

Www.Biggerpockets.com/forums/12/topics/666957-multifamily-investing-with-your-family

@Alina Trigub thanks for the advice.  Any recommendation on how to structure the arrangement so that it's fair, at face value,  for both parties?

It has been hard to get into the local multifamily rental market in the Northeast because saving enough for 25% down is seemingly taking forever. I already own a home (my primary residence), which for several reasons I can't sell and move into a new place to quality for an FHA loan and only pay 3.5% down. I have a brother much younger than myself (early 20s) with no prior mortgage. I have considered co-signing on a mortgage with him in a multifamily property (4 unit?), and paying the entirety of the down payment, then splitting the income from the remaining units. Does anyone have experience doing this? Does it make sense? Is it even allowed or is there some subtle rule of FHA loans that forbids it? Of course this is assuming he can qualify for the mortgage...

I'm in North Worcester. New investor looking to gain experience in acquiring rentals. I'm not sure what else I can say here without breaking the BiggerPockets rules for forum posting.