How to Structure a Credit Partnership

[Vittorio Rendor]

Hi BP!!

Just wanted to ask experienced investors on how to structure a credit partnership. I'm attempting to do the BRRRR strategy for my first single-family/rowhouse. I have 680 credit score -- which I started from scratch/none -- last year because I just migrated to the US. I have a decent job in IT, so I have saved around $10-12K, just enough to put down as skin for any potential private or hard money loan.

So I called a portfolio lender to double- check if could qualify for a back-end/cash out refi, and they said NO because of my new (less than a yr) credit history. So my next step now is to get a credit partner, so I could proceed with the BRRRR deals that I have.

Questions:

1) Based on your experience, how did  you structure the credit partnership? (eg. 50/50 cash flow and equity?)

2) Do you advice to do it in an LLC? What documents are need to make this partnership work? What clauses should be there to protect both parties in case one wants to go out of the deal after X number of years?

Thanks,

Vittorio