All Forum Posts by: Account Closed

@Stephanie Medellin and @Andrew Postell, thanks for the input. Let me try to clarify more. 

The partner (who is lending) is bringing the money and putting the lien on the property at the cash close. He is paid off when the Rate/Term refinance is through.  Post-refinance, he will release the lien as he got paid. The Rate/Term loan is only on my name. 

Now, he agreed to do this because he was promised some equity on the deal. After the Rate/Term is set and done, I will draft a partnership agreement to document his share of the ownership. My question was is the partnership agreement the best way to document his ownership of he property. 

Also, because you both are lender/mortgage broker, can two people be on the title and only one of the title holders get the loan at refinance (unrelated to above scenario) ? 

@Eamonn McElroy, yes I am the better looking twin. :) 

True, it was a hypothetical scenario. If you ignore all the noise, I was just trying to confirm that a person can have an ownership on a property even though he/she is not on the title or loan.  And the partnership agreement is the best way to document that. 

@Al Pat, Oh ok. I did not know that you could have multiple people on the title and only one of the title owners have the loan. I will confirm this. Thank you so much for your input.  

@Al Pat, we are intentionally not doing that (i.e., both partners on the loan) because one property will count against the 10 Freddie Fannie easy loans for both of us.   

Background: The private equity who is lending me the money to do the deal is actually an equity partner. He is bringing all the money. However to get the Rate/Term loan without the seasoning period, he will be in the first lien position at closing. Once the Rate/Term loan is through, he will get his money back ( current ARV supports this) and release the lien. Post refinance, I will be on the title and loan but he will have 50% equity.

Question: Am I correct to say the partnership agreement between me and him is the only place that will dictate the ownership of the property. If I were to sell the property without his knowledge, I can (I will never do that). He will have to sue me to enforce the partnership. Is this the best way to have 50-50 partnership where one partner has all loan and is in the title?

Your goals and story: This is a BRRRR Deal.

Type of property: Single family home

Location of property: Atlanta, GA

Purpose of financing: rate/term refinance

Type of financing sought: Fannie/Freddie

Current or prior ownership of real estate: Currently own one Triplex, one SFR and closing two next week.

Occupancy: investment with traditional long term leases

Value of property at present and/or your offer price: $ 100K

After repair value: $150K (without any work)

Anticipated or actual appraisal issues: anticipated

Current rents per month: $850

Fair market rents per month: $1100

Down payment or equity: ~30%

Source of down payment funds, if applicable: forced equity

Income Source: Salaried/hourly W2

Gross monthly income (optional):

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $

FICO: Excellent

Credit issues: None

Background: The private equity who is lending me the money to do the deal is actually an equity partner. He is bringing all the money. However to get the Rate/Term loan without the seasoning period, he will be in the first lien position at closing. Once the Rate/Term loan is through, he will get his money back ( current ARV supports this) and release the lien. Post refinance, I will be on the title and loan but he will have 50% equity.

Question:  Am I correct to say the partnership agreement between me and him is the only place that will dictate the ownership of the property. If I were to sell the property without his knowledge, I can (I will never do that). He will have to sue me to enforce the partnership. Is this the best way to have 50-50 partnership where one partner has all loan and is in the title?  

Your goals and story: This is a BRRRR Deal.

Type of property: Single family home

Location of property: Atlanta, GA

Purpose of financing: rate/term refinance

Type of financing sought: Fannie/Freddie 

Current or prior ownership of real estate: Currently own one Triplex, one SFR and closing two next week.

Occupancy: investment with traditional long term leases

Value of property at present and/or your offer price: $ 100K

After repair value: $150K (without any work)

Anticipated or actual appraisal issues: anticipated

Current rents per month: $850

Fair market rents per month: $1100

Down payment or equity: ~30%

Source of down payment funds, if applicable: forced equity

Income Source: Salaried/hourly W2

Gross monthly income (optional): 

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $

FICO: Excellent

Credit issues: None

@Marcel Williams, I have a triplex in college park. I am down for a meet-up

Hello fellow CPA. I own a triplex in Clayton County and would be interested in tagging along in your meetings and discussing the area if you want. I also own a SFR in Kennesaw and looking to buy 2 more rentals by EOY. l

Thanks @Nicholas LaGatta

Thanks @Nick Fitzpatrick.