Partnering, Lenders, and Pre-Approval

[James Passemato]

My partner and I are new to real estate investing and are getting ready to invest in our first property in Milwaukee. After listening to mayn podcasts and webinars about partnerships, we've heard the description that one partner brings the money for the down payment, and the other can secure the loan and manage the property for a 50/50 split.

For this example my partner has slightly more funds than I do going into the deal. When I reached out to a lender the other day about pre-qualification and pre-approval, I told her how much money I had in my bank accounts and she said this wouldn't be enough money for the down payment on the price range of properties I was looking at. I explained that my partner would be funding the majority of the down payment, but she said that I can't just accept a transfer of money from her to help fund the down payment. Our original thought was that I would put the property in my name because I don't currently own any property, but now she also has to be on the loan to show the funds in her account as well.

I guess I'm confused because I got the impression that one partner could fund the deal and one could take out the loan and manage the property as part of the deal. Am I missing something or is there a certain way you have to plan or approach this process? Any tips would be appreciated!