How to finance while creating a partnership with my bro

Question

hi there,

I am looking at getting the ball rolling on my first deal. My brother in law is very eager to be involved. Here is our scenario which I will follow with a question:

I have some decent savings probably enough for a down payment on a deal.

He has more even more cash.  However he is a pro basketball player in Europe, which potentially makes proving his income a bit tricky, as he gets paid in Euro etc.

How do we best find funding? Is a co-sign a viable option? Or is it best to personally buy a home to flip and simply let him pay for the remodel?

Thanks!

Nate Sanow · Answer

@Percy N. thanks to you as well.

I need to learn the ins and outs of finding portfolio lending as you put it. It could be a game changer for sure !

Nate Sanow · Answer

hey thanks for the response!!! We were out of town on vacation when I wrote this. I forget to reply to your reply I am sorry!

His score isn't bad doesn't have negative reviews just a low end 600 ish due to lack of use.

Thanks for the tip!!!

Chris Mason · Answer

@Nate Sanow - What's your brother's US credit score like?

Another obstacle you may face, using residential financing, is that gift funds are not allowed for investment properties. Pragmatically this means that his $100k transfer into an account with your name on it (joint account works) needs to be seasoned for two bank statement cycles.

Nate Sanow · Answer

@Anthony Angotti

Thanks for my first reply! I agree and he and i have said we would do a contract to protect all parties involved. Doing some hard math now for 2 years to be patient and just looking for the shift. I would prefer bank financing, but again just not sure how that will work given his pay is sizable but foreign.

Anthony Angotti · Answer

Hey @Nate Sanow,

I would think that either option is doable, but make sure that you both draft a very good contact and agreement. Make sure that you know responsiblities and make obligations very defined. Then have it drawn up legally. Just to avoid any personal problems between you and your brother.

How specifically to finance the deal would depend on your own personal situation. You could fund yourself or you could find other people's money. If this is your first one you will need to tap your network to find another investor. You could also go hard money, but just make sure you find rock solid deal with plenty of room since the first one will potentially be hard to estimate rehab costs.

Just my two cents.

Tony

How to finance while creating a partnership with my bro

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