Minnesota Partnership Questions

[Daniel Vikhtinski]

Hello everyone,

I found a fix-and-flip deal where all the numbers look good except for the fact that I don't qualify for the loan due to not meeting liquidity requirements. Unfortunately, this means that I have to let this deal go, but it made me come up with a couple of questions about this situation:

Does anyone have experience in partnerships where one partner's only real requirement is to sit on the loan and potentially provide interest payments when needed during the duration of the construction? I've never seen a partnership structured this way or heard it talked about.

What would fair compensation for such a partnership even look like?

Any help is appreciated!

Thank you!

[Daniel Vikhtinski]

@Bill B.

Thank you for your response! So, essentially through the lender I had lined up, they would cover literally 100% of the costs of EVERYTHING, but it was a cheap house with low renovation costs, so the interest payments were not going to be any larger than a typical mortgage payment around here. The problem as I stated was that I had no liquidity, so yeah. I needed a partner to just hop on the loan, help with interest payments for the duration of the renovation, and then gain some compensation. I’m a new investor, so I didn’t mind forfeiting a significant number, I just didn’t know what would be fair for a situation like that.