JV With a twist. Money guy coming in with a Mortgage

[James Wise]

Alright i'm not 100% sure how I want to go about this.

I have a tentative JV agreement in place. I'm writing up an offer for a house to hold as a rental . It will be a 50/50 split. I have a money guy coming in with the purchase price and my company will come in with half the initial repair cost and do all managing and repairs going forward. 50/50 profit split. The issue is the money guy does not have all cash. He wants to come in with a mortgage. (He is prequalified) Best way to do this?

Options.

Put him and my company on title but have the mortgage only attached to him? I have a hard time believing a bank would be willing to go for this?

I'm thinking about Having him purchase the home in his name and quit claim my company onto title after close. Should I be worried about the "due on sale" clause? Is this getting into a grey area?

Has anyone closed a deal such as this? If so, how did you go about it?

Any of you guys mind weighing in?

@Rob K.

@Jon Holdman

@Jon Klaus

@Rich Weese

@J Scott

@Bill Gulley