How to purchase more investment properties with lack of capital?

[Gordon Chen]

Hello Everyone,

My name is Gordon and I'm a young investor (turned 24 in Sept.) who is about to close on my 2nd investment property (single residential) on January 14, 2022. Now, after this property, I am saving up again to ensure that I can purchase a 3rd investment property. But starting mid and late 2022, I already have multiple off-market single family home deals that friends of my parents are looking to sell. Challenge is that I lack capital, especially after closing on this 2nd property I wont have enough capital until maybe early 2023. And I am the type of person who do not like to waste an opportunity, especially when one of the most difficult part is finding deals. 

Due to the lack of capital, I may not be able to take advantage of these opportunities. However, I do have friends who wants to invest in me by providing the capital and for them to be the passive investor whereas I am the active investor. (FYI - Each friend has enough to put their own down payment and more per property) In this situation, what do I need to do in order to purchase these properties with their capital? Will I need to start my own LLC or create an LP?

I have several other questions such as how will profits be split, when taking out a loan whose name will the mortgage be under, etc.. But for now I would like to understand what are the steps to developing a partnership to purchase these single family homes without capital. Any book recommendations, podcast, or YT vids will be greatly appreciated.  

Thank you in advance! 

[John Teachout]

1. You can't buy every good deal. Buy the best ones.

2. Sometimes there will be periods where you can't take action due to financial restraints.

I would be cautious "partnering" this early in your investment career as there's lots of ways for things to go sideways.