A partner and myself are looking at a potential buy and hold property. It should cashflow very well and all the numbers work out. When looking at financing though we are torn as to which direction to go. We can both afford the 20% split down the middle (albeit it would be a large chunk of our existing cash), however we also see an avenue for bringing in someone else who can pay the 20% down and a guaranteed return while we don't pay anything out of pocket. This structure would eliminate about half of the potential cash flow though.
Does anyone have any experience with a situation like this or have any recommendations on which option to pursue?
@Payne Wald If the 3 party bringing the 20% is passive then you run into securities law issues so be sure to consult an SEC attorney if you go down that route.
Another option would be to invest more passively in a multifamily syndication which is much less work for you and also could potentially provide better returns in the long haul (15-18% annualized).
Send me a PM if you want an SEC attorney referral and if you want to chat further in this topic.
I’m personally invested in 15 multifamily syndications.