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Updated 8 months ago on . Most recent reply

User Stats

24
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18
Votes
Eric Sato
18
Votes |
24
Posts

How to structure a deal - money for start up costs on STR

Eric Sato
Posted

So I am very new to financing. 

Let's say I am going to buy a SFH for a STR.

- I plan to do all the work for the STR etc...

- But I have a family member (Brother or Parent etc...) who is interested in putting some money into it.

- Total start up costs (Down payment + closing costs, furnishing, getting started on Airbnb etc...) = 200k USD

- Family member wants to put in 50k USD of the start up costs, but doesn't want to be on the hook for the mortgage. 

How would you structure that deal? What is typical? Do they only get a portion of the equity of the house? Do they get a portion of the mortgage? Or is it a portion of the all in business venture? 

Any ideas?

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