19 year old trying to buy first duplex

[Jack Hritsko]

Hello BP family! Recently I've been in search of my first deal and think I found the duplex in my area, pittsburgh, where the numbers make sense. I ran the numbers using the BP rental calculator and this property could be cash flowing between $700 and $900 with a 13% CoC ROI.

There’s one problem....

I am a 19 year old that would not be able to get pre-approved or come up with a $30,000 down payment. I have a family friend partner that is very supportive and said he wants to help out with my first deal. I am looking for advice how to pursue this deal with a partner.

How do I pitch the deal to him? (I have the pdf saved from the calculator)

How does co-signing work?

What is an idea of how much percent he would get from the deal?

How do I compensate my partner, would he get a split of the monthly cash flow?

I hear Brandon say all the time to just “get on base” and get started however you can. I’m not really concerned with how much profit I will be making it’s more of just getting acquiring my first asset to leverage moving forward. Thanks in advance!

[Landon Bleau]

Jack, ask the family friend if they would prefer to be a private lender or a equity partner and go from there based on what they're looking for.  If they're indifferent, I personally would prefer a private lender partnership as there typically can be more upside, assuming you're not paying a crazy amount of interest.  As for splitting the deal, in a private lender scenario you would pay them the fixed amount over the term of the loan, as for an equity deal, you would have to negotiate with them what works for the both of you, maybe it's 70/30, maybe 50/50, just have to have an open and honest conversation with them.  Congrats on getting started!