Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
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 2 years ago on . Most recent reply

User Stats

25
Posts
6
Votes
Isaac J Mork
  • Rental Property Investor
  • Bellingham, MN
6
Votes |
25
Posts

How do you structure deals with investors?

Isaac J Mork
  • Rental Property Investor
  • Bellingham, MN
Posted

I recently saw a youtube video with Cody Davis talking about how he used investors to buy multi unit building

The math was like if he could raise the rents $83/mo per unit on a 6 unit building at a 6% cap rate it would add about $100,000 of equity.

He mentioned something like he needed 90k and the investor could double their money. That's kind of how he set it up.  I may be wrong but I am assuming if he missed a payment the investor would be entitled to that $100k in new equity.

Now I am wondering how are you structuring the deal with the investors? does that new $100k in equity get a cash out refi and payoff the investors? Are the investors a 30% partner on that property forever?

What resources are out there with how to structure deals like that?

Loading replies...