Private Lender/Partner for FHA Condo Buy in Brooklyn/Queens

[Myles Ellison]

Hey BP Fam, wanted to run something by you all. A former real estate broker/mentor offered to help me buy a condo. His proposal is that he would pay the full down payment and closing costs and we would own the place 50/50. He would basically give me private money and I would use my FHA privileges. I'd live in it for a year and then we'd decide if we wanted to rent it out/I'd stay there/we'd sell it. He mentioned the possibility of good appreciate in the coming years. The neighborhoods I'm interested in are Ridgewood (Queens) and Bushwick (Brooklyn).

However, I am a few weeks away from closing a sale on a property I own (inherited when my parents passed away a few years ago) out of state (Vermont) and will have enough to move forward myself if I want to. He even mentioned to me how "it would be smarter for me to do it myself." He also mentioned that he would co-sign a mortgage for me if I needed any help.

I know this all sounds like a nice offer, but he has an interest in getting a return on his investment, of course. And he can be a rather intense/pushy person, so the thought of partnering for this does give me pause... I've been a real estate agent for 7 years and he was my broker for 4 of those years. I know it might sound crazy, but I've only done rentals and never repped a buyer/seller, and going through the sale of the out-of-state property is my first experience buying/selling. He also mentioned I could represent myself in the deal and use my commission to reimburse myself for closing costs.

Does this sound like a good idea? Bad idea? All I can think of is what Bigger Pockets has drilled into me, which is "don't buy for appreciation, buy for cash flow." But then I look at comps of condos in my areas of choice that sold for $200k in 2013, which are now listed for $400+...

Any comments/advice appreciated. I'm assuming the first step in all this if I did move forward would be meeting with a mortgage broker and finding out what I'd qualify for. My credit is excellent and income is decent. Thank you.