HOW to handle partner with MONEY💰 , no time or knowledge

[Mo Muigai]

I’m doing due diligence on a triplex and duplex that owner prefers to sell together! I don’t have $100k to put 25% down. A family friend is interested in going in with me, he has the $$$$$ to put down. What is the best way to set up this “partnership “ in the deal? I do all the work and manage he does down payment we split 50/50? Please advise from experience or knowledge. I appreciate

[Jeff Cichocki]

@Mo Muigai,

You need to ask your money partner what they want/need to feel comfortable in the deal. Whatever that is (as long as it still works for you) is what you should set up. That means it could be a true JV, it could be a loan, it could be a participating loan, it could be an option, it could be a lot of different things. It could be a blend of more than one of these things. There is no one right answer. You have to sit down with your money person and figure out their needs. Without knowing their needs, everything you offer is just speculation. Make the wrong offer to many times and you could easily scare your partner away.

My advice... Stop asking us what we would do and go ask them what they want (sorry. that sounds a lot more harsh than I actually mean it). After you find that out, come back and ask us how to help you structure something that fits that. After you have a structure that looks good to both of you, get an attorney involved to draft the agreement. 

Good luck.