Taxes and financing partners

[Ed Maione]

Hi all - I'm in a situation when I have access to enough cash for down payment and rehab for a flip but don't have the DTI available for financing. I'm recruiting a money partner to fill the gap but am not sure the tax implication it will have on them. They will not be an equity partner but will get a flat fee for essentially just signing the paperwork. Common sense tells me that there should be no way that they will be responsible for the capital gains but would like to hear the process so I can explain it comfortably. Would love to hear how you've dealt with the situation and even any pointers on the arrangement and agreement with the money partner.

Thanks!

Ed