I decided to open a new business which instantly made me not bankable considering I can't use my income towards the loan (I have to wait two years). Along comes a friend of mine who is about to come across $100k cash from selling a house his father gave him. He came to me because he knows I've been studying and positioning myself for the past year or so to get into REI. He approached me with essentially, "I have the capital, you do the work" concept.

The Current Plan:

We would utilize that $100k towards multi-family (possible look for a BRRRR property), I would live in one of the units and manage the other units for him. In return, I get to live in one of the units for free. He wouldn't live there because he doesn't want to live in a du/tri/quadplex and is willing to pay rent to live elsewhere out in the secluded outskirts of Orlando. He would get his first property for his portfolio, and I increase my cash flow by knocking out my biggest expense (rent). The only problem I have with this plan is I was hoping to be in my first property by 2019, but doing all this for him would probably push me back until 2020, but all in all, this seems like a good deal.

My Question:

I am coming to you guys/gals because I am curious of two things:

1. Is there a flaw with the current plan?

2. Is there a more effective/efficient route of utilizing his $100k?

So far I'm appreciative of this current plan to be rent free and gain a ton of experience grabbing this first property for him, but he said if there is a way for us to both come out with a property at the end of this, he'd be willing to listen. I look forward to hearing from you guys/gals!

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What Would You Do With A Friends $100k

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