Curious to get your opinion on this...

[Todd C.]

Hey all--

Doing a lot of things in real estate right now (hopefully) and this is one of the opportunities I'm most excited about. A friend of mine (let's call him A) has done a handful of 3-unit building purchases over the last 5 years. He cash flows roughly $1,000-$1,500/building and will typically put some money into properties to get some 'sweat equity' out of them. 

I've spoken to another friend of mine (lets call him B), who has the liquid funds to provide the cash to purchase a similar type of property, working with both myself and friend A. Friend A would provide the knowledge, the connections and be the 'guy on the ground.' Friend B would provide the capital. I would be the person on the mortgage. Friend A would get 15%, Friend B and I would each get 42.5% of the property. I would also be responsible for either a) providing Friend B with a monthly sum of money until I reach about ~20% of the down payment or b) provide Friend B with my portion of the cash flow until I reach ~20% of the down payment.

All in all, this seems like a home-run to me, however given I've never done this before I am a little anxious about being the only person on the mortgage. My quick math suggests that I could earn upwards of 60% ROIC every year. I'd be curious to get your opinion on this situation. Thank you!