Financing-FHA Approved. How do I use this with others' money?

[Nina Grayson]

As I have been educating myself on REI, I wanted to know how much of a mortgage loan I could get approved for right now on my own. With one lender I was approved for $150k at 4.5%. I know it's peanuts for the CA market, but it gave me an idea of what I can get solely on my own. Of course, I want to invest and I need a bit more to get into a 4 plex or more. So I need others' money to do it. My question is, can I use the individual loan and get others to bring in their funds and have it all under my name or should we get the loan under an LLC? I'm not sure how my own loan approval would work with adding others' money to the mix. Thanks for clarifying this for me...

[Nina Grayson]

David, 

This is a program through LA County that provides a $60k down payment grant. They limit the DTI. I have money for a down, and a great credit score. They just limit the amount if you are only putting down 1% earnest and using the grant.

My intent is not to make a financial partner a guinea pig. I only will go into vehicles that have Market and Rent analysis that shows a strong ROI.

It is my understanding that investing with low or no money down is achieved with partners who have the funds but do not have time to do the leg work of finding the deals. I was simply seeing if I could bring something to the table with an FHA. Apparently, using an FHA with partners is not possible.

It is possible to by a property in LA County for $150k or less.  However, you have to go East or North into the Valley. Although, there are not many duplexes or in-law properties in those areas that I've seen in that price range.  I'll have to bring cash to the table and do an Limited Partnership commercial loan with partners.