I found the deal, presented it to a partner...now what?

[John James]

I am new to multi family but not real estate.

I know a person that wants to sell their 10 unit apartment building. Great location, great price, good condition. Anyways, I do not have enough money for a 20% downpayment so I presented it to another investor I know. 

They really like the property and want to buy it, however, I think they want more of a 50/50 partner as far as putting the money down to buy the property. I could put maybe 10% of the required amount down to help. They are offering a finders fee but I would really like to own a piece of the equity, EVEN IF it is just a very small percentage. I dont really want a fee. I want to build my portfolio. Is this possible? What should I do?

Thanks!!

[Brad Birky]

Originally posted by @John James:

@Caleb Heimsoth not sure why it wouldnt cash flow one month lol but uh thanks for the info 

 No John - not lol.  They are telling you the reasons why it might not cash flow, you are just not listening.  If you have to make a major repair like broken pipes or a roof, you and your potential partner will spend more than you make that month.  If several tenants do not renew their leases and move out, you and your potential partner would spend more than you make until those units are filled.  There are dozens more scenarios where this could happen.  It is possible to make more than  you spend, but it is not guaranteed to happen.