Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 11 years ago on . Most recent reply

User Stats

5
Posts
0
Votes
Tia Power
  • Real Estate Investor
  • Maplewood, NJ
0
Votes |
5
Posts

Purchasing my first investment property with his terms

Tia Power
  • Real Estate Investor
  • Maplewood, NJ
Posted
Hi Everyone, I need your help. I am planning on a 2 family with a FHA loan. I plan to live in one of the units. I have the 3.5% of the purchase price. I was informed by my mortgage consultant that I would need to have a total of about $16,000.00 which includes down payment, escrow, property tax, closing cost just to name a few. I have a friend who is willing to be a silent partner in which he would loan me $10,000 on these terms. 1. His name will not be on the deed/title. 2. He receives the full amount of the rent for the 2nd unit until he gets back his $10,000 that was loaned to me (over a 1 year period). 3. After he receives the $10,000 he will continue to collect the rent on the 2nd unit. 4. Return on investment for him. (ROI) What he says I will gain: 1. Owing a two family property. 2. Equity 3. Tax deductible/write offs Does this sound like a fair deal? All answers are appreciated. I apologize if I'm not too savvy with all the real estate terms. Thanks in advance.

Most Popular Reply

User Stats

90
Posts
27
Votes
Erik Pedersen
  • Bayonne, NJ
27
Votes |
90
Posts
Erik Pedersen
  • Bayonne, NJ
Replied

Try to do 'Seller Concessions' with the seller -- that is -- you roll your closing costs into the mortgage. Ask your Realtor about this and do a little research first so you understand.

I did this with my 2 family and went to the closing table with ~$5k. I did $9k seller concessions so its in the same ballpark as the deal you are doing.

Loading replies...