Chicago 203K Partnership?

[Ryan Heldt]

Hello BP Community

Looking for a little bit of guidance here...

I have been spending quite a bit of my free time learning about the benefits of REI and decided recently that I will be pursuing a buy + hold strategy to build some long term wealth. While my current financial situation is improving, I do not currently have the ability to jump on a deal should I find one.

After explaining my plan to a close friend who also lives in the Chicagoland area, he told me he is interested as well and has up to $40K to invest. We both currently rent (separately) and are looking in the direction of doing an FHA 203K on a 4-plex and renting out 2-3 units.

Any advice on how to structure the partnership and/or better ways to invest the $40K? I told him he might be better off pursuing this on his own as he would have all the skin in the game initially but he insists on me helping him and holding him accountable. Right now we're leaning towards putting everything in his name and I would live low rent/rent free until we could pursue a 2nd investment. Assuming we find the right deal, it seems like this strategy would increase our combined cashflow the greatest.

Thanks in advance.

RH