About 5 months ago, I began my journey into Real Estate and I came across Bigger Pockets. It’s help to completely transform my life and goals. Reading the forums, the recommended books, and talking to other BP members has convinced me that Real Estate investing will be a big part of my future.

I've been working with a partner and we're getting closer to doing our first deal, and I was hoping to get some help from BP members.

My REI partner has applied and been preapproved for a loan. Terms:

30 year
4.875%
20% LTV for a SFR
25% LTV for a Multifamily
$60,000 Loan (could be more but this is what we asked for)
Closing costs about 6%
Property taxes must be prepaid (as part of the monthly payment) for the first year

This is a loan he applied for in his name only. The mortgage broker knows that he plans to invest in an out-of-state investment property with partners.

My question:

If we invested together with others using his loan, how would the process work?

We were thinking:

My friend would get the loan in his name
The four of us would split the down payment / repair costs, if any
We'd put the deed of the house into an LLC that's shared equally among the 4 partners

I know that transferring title runs the risk of the Due on Sales Clause.

- Is there a way around this by using "estate planning"?

I've been reading through other forum posts but most of what I have read are about more complicated deal structures.

Anyways, if anyone has any input, I'd appreciate it.

A couple of additional notes:

- We'll be investing from abroad (though we're both US citizens, we work abroad). Our partners would include people on the ground where we want to invest.

- It was difficult getting the loan as overseas investors! It probably took over two months. We were able to impress our Loan Officer, however, by using knowledge from BP to put together a good loan binder. @Ben Leyvovich 's CFFU course, @Jesse Gonzalez in CA's guidance on Fannie Mae, and @Bill Gulley 's post on Loan Binders were all great sources of information re: the Loan Binder.

Jesse Gonzalez's info on Fannie Mae:

http://beta.biggerpockets.com/forums/49/topics/125...

Bill Gulley's Post:

http://www.biggerpockets.com/forums/311/topics/105012-what-to-include-in-binder-for-lender

(If anyone has thoughts on the Loan Terms, too, I'd love to hear them.)

Thanks BP!

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