Can I Bring Borrowed Money into a Joint Venture Deal?

Can I Bring Borrowed Money into a Joint Venture Deal?

Rental Property Investor · Chicago Suburbs, IL · Member since 2021 · 72 posts · 54 votes

I have been invited to JV on an investment property using a DSCR loan, but I don't have enough cash on hand. Can I borrow money for the down payment and use it for the JV? If so, how would I need to structure the JV agreement? I have never worked with someone else on an investment property before.

To clarify: the scenario is a buy and hold residential rental property, no plans to pull money out of it.

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  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    You need to disclose this with your JV partner. An ideal scenario would be to bring a private money lender, or someone who is not going to put a lien on the property and interfere with your JV agreement.

  • Rental Property Investor · Chicago Suburbs, IL · Member since 2021 · 72 posts · 54 votes
    3y

    Thank you, Eliott! That helps frame how I can go about it. I can try to secure the loan against something other than the property.

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