What is the best way to structure equity deals with partners?

[Ricardo Nunez]

Hey All,

First time caller, long time listener.

I have finally decided that the real estate market is the direction I want my life to go in. I took the first step by buying a home cash 6 months ago. Unfortunately, I did this before I started doing a lot of homework on investment strategy and am now left with zero down payment for any houses I find on the market. Currently I have access to a pretty sizable mortgage loan and qualify for the FHA program as the area I am purchasing in counts as a relocation.

My question is this: I have the the loan ready to go but I have zero money to put down. I have multiple partners I could work with but I am finding it incredibly difficult to figure out how to structure the equity in the deal, as the partner would need to front 100% of the down payment and I would provide the loan, as well as all of the work (finding the deal, making the deal, rehab, finding tenants, refi, etc).

I would greatly appreciate any advice you all could provide.

If this influences the advice at all; I am looking to purchase a Multi-family home (Quad) in San Diego, where finding a good deal is proving to be difficult due to the high market. Rents are high but so is pricing as supply is low and demand is high. I am aiming to use the BRRRR! strategy and want to go full force into attaining multiple properties in 2020.

Best wishes to all and happy holidays.

-Ricardo