Partnering on a FHA loan

[John Bernabel]

Hey everyone. 

I was talking to a family member who is interested in investing in real estate over the weekend and the conversation of partnering came up. I have the real estate knowledge, rehab knowledge, and I also have the capital for about a 10% downpayment. He has no RE knowledge, or enough cash for the downpayment, but he wants to learn and is willing to put some sweat equity. You're probably asking.. so why would I want to partner with him? well I already have an FHA loan so I couldn't get approved for another. Partnering seems like a pretty good way to get financing for more deals. With an FHA that only requires 3.5% down, it becomes much easier. Im thinking, I can put the money in for the downpayment and we go 50/50. With the right deal this seems like a win win. I grow my portfolio, and he gets to start his investing.

I know what most people look for is a partner who brings in the money, or knowledge but considering all he can offer up front is the FHA loan approval, what do you guys think? Is this partnership a good idea? In a way he's making the money available, so I personally feel like it is but id like to hear your opinions.

Any advice or tips appreciated.