Partnership in the near future (roughly a year timeline possibly)

[Account Closed]

Hello all,

My name is Chris Williams, and I am new to real estate investing. I am 22 years old and haven't purchased my first real estate property just yet. With my current situation as a full time student athlete, I don't have the time to work a full-time job and my debt to income ratio is very lobsided with student loans. I understand that with real estate that it doesn't have to be a one person type thing. I am looking to do a partnership in the future.

Some basic terms of the partnership:

1. I take on the risk of the mortgage and the partner would cover the down payment and closing costs

2. We would split monthly cash flow 50/50

3. We would also split profit/loss 50/50 in the event that we sell the profit

4. I would find the property manager unless my partner has a good connection

I understand that with the price range that I am looking at being $165-200k the cash flow won't be crazy high more than likely, but this partnership would allow me to get my foot in the door.

Feel free to reach out to me via connect request and I would be thrilled to talk some specifics that aren't listed in this post.

[Andrew Garcia]

Hi @Account Closed, in your scenario, if you have a significant down payment saved up (20%+), you could do a DSCR loan.

That qualifies you based on the income generated by the property. Not your personal income.

If you do not have that, a partnership would be the best route. You could currently do a partnership with the terms you proposed with a DSCR loan. You do not have to wait until your DTI improves.

The biggest issue that I see is that you are not bringing much value to the capital partner. You are taking on the mortgage but they are likely not going to buy something with the intention of defaulting.

Typically these partners find the deal, perform some sort of value-add, and manage the deal. Are you doing any of these or some sort of valuable service?

If not, it will be tough to find a partnership.

Hope this helps! Let me know if I can be of any assistance.