Newbie with a question

[Adrian Buck]

I started in residential Real Estate sales following graduating from college. That was 2004 just as the market was getting hot. I dabbled in flipping properties and made some good money. Following the downturn I chose a different career path while maintaining my intention to build wealth through Real Estate.

I'm now in a financial position where I can realistically entertain the idea of investing. My dilemma is that I save slowly and don't have enough of a down-payment to buy a multi-family property (where I really want to invest).

I settled on the idea of buying an inexpensive first property while learning the ropes until a friend offered to fund some joint-venture investment properties. I'm trying to process what that would mean for someone like me who doesn't have nearly as much cash to put toward a property as my partner.

Have you found that partnering on deals is beneficial long-term? How have you structured it? Is it even a good idea?

Thanks BP! This has been a great learning experience so far!

[Joe Villeneuve]

Good question.  Here's how I do it:

* Your cash
* Your partner's credit

1 - You buy/rehab all cash
2 - Partner refri's all your cash back out
3 - Use recovered cash for 2nd deal
4 - Partner refi's out of that one
5 - Keep repeating until your partner can't get anymore loans you can't 
   .....then find another credit partner and do it all over again.

Remember, your cash is never spent...just re-used a never ending number of times.