Using Investor Capital

[Mario Lopez]

I'm getting closer to the point where I want to market my investments to obtain 100% outside capital. My business plan is to get financing on the asset, so my questions are geared toward using investor capital for the equity portion of the loan. The assets are 1-4 units of residential, so non-commercial loans. 

1. Assuming I'm using full outside capital, who is being qualified for the loan? Myself, myself and the investor, or just the investor?

2a. If the investor is on the loan, and has to get qualified, it doesn't seem appealing for an investor to have to go through the loan process. Is this an accurate statement?

2b. If the investor is not on the loan, does the lender accept that the down payment is provided by an investor and that I have the financial strength from a debt:income perspective to qualify for the loan?

3. Assume the investor is providing 100% of the equity requirement and I am guaranteeing an acceptable annual return, is normal to ask for 50% title on the property or is there a generally acceptable equity split if I do not provide any monetary equity? In other words, how do you a number to the value of sweat equity?

4. If I provide some equity to put skin in the deal, is there a percentage below 50% that makes sense to get 50% equity in the deal?

I understand I should get a legal opinion and to setup an operating agreement, but I have these questions below to help me frame my perspective for when I go to an attorney and actually market to investors.

Thanks!