House Hacking Partnership

[Jacob Zivanovich]

Hey there,

I'm almost ready to purchase a house hack and have found some good deals right off the MLS. Trouble is that I don't yet have long-term employment in place (just moved to the area a month ago). I really want to make this happen, but I won't be qualified without that income. I have the reserves in place for the 5% down payment, 15K for emergencies, and have no debts!

I recently connected with a gal through a BP meetup and want to try and organize a partnership. I would provide the cash and backup reserves, I house hack one of the units, then she becomes the cosigner for me in order to be approved. In exchange, I'm thinking that she would collect all the cash flow and potential equity until I refinance and get the loan originated in my name... Is this a thing? Is this a equitable partnership?

[Sarita Scherpereel]

Have you connected with any local banks? We have one in Chicago that would work through the things you're lacking for a purchase and offer a first time buyer grant! Local banks can have some wonderful lending options because they want to grow the area. 

Personal Partnerships with someone you recently met are too risky for my blood. I wouldn't want to partner with some of my family and friends. It takes a very special relationship to work with someone in such a risky industry. 

[Jacob Zivanovich]

@Sarita Scherpereel

Hey thanks for the reply! I haven't yet, and that's a great point. Connecting with local banks/lenders should be the next step. 

I can definitely see how a commitment on that partnership is very risky. I was thinking it was maybe less risky since I would try and refinance out of it when I had the chance, but it seems there are better options.

[Sarita Scherpereel]

I admire the passion to get started. I would kept connecting with lenders and realtors in the area. You sound really close to doing this without a partner. They might know programs that can help fill the gaps! Keep us posted on your progress! 

[Jacob Zivanovich]

@Sarita Scherpereel

I'll keep it going, no worries there!! haha yes, I'm very excited to keep the BP forums updated on the process.

[Janet Pritchett]

If you’re not dead set on house hacking specifically, I’ve got a couple of ideas that might get you started without having to prove income. Or, if that’s what you really want to do, what if you used a different type of loan to get into it. I’m not saying partnerships aren’t good - but if you didn’t want to rely on someone else, I bet we could figure something out! 

[Jacob Zivanovich]

@Janet Pritchett

Hey Janet! Thanks for replying. I found a lender here in Spokane that will allow me to go through the process in 6 months or so, since i found long term employment with a great salary (plus some commission)! I'm going to use this time to save up my reserves, since they're not exactly where I want them to be anyway. 

However, I'd still love to hop on a phone call and see what you had to offer.

[Janet Pritchett]

@Jacob Zivanovich sounds like a plan! 

Yes! Let’s connect!