Originally posted by @Andrew Johnson:
@Ayana Sabree I think it might help to define the type of partnership you're looking for as well as your goal with the two duplexes. If it's a buy-and-hold scenario then it might be harder to get behind the idea of losing 50% of the cash-flow (i.e. paying it to a partner) while having 100% of the risk in the deal. It it's a rehab then flip at a higher price then at least there's a near-term exit (my capital isn't tied up for __ years) and it's a little easier to "split the profit". The other challenge is that there has to be A LOT of meat on the bone if you're going to split it two ways. Basically, if your deal cash-flows $200 per unit and I (as the person with the money) can find a deal that cash-flows $100 per unit on my own there's no real reason for me to do the deal. You've taken the upside away. It's not that you didn't work hard to find the deal, don't deserve to be rewarded economically for finding the deal, but it's helpful to keep in mind that "the folks with the money" have to find a deal that's "over twice as good" as they can find on their own if they're going to take on a no-money 50/50 partner. Now if as @Brian Schmelzlen suggests you can operate as the property manager that's helpful but likely not to move mountains.
If your deal is great, why not go to a HML? There was just a podcast with a HML that only lends in Texas. The terms aren't great (which he shouts from the rooftop) but if the deal is uniquely special then there are worse things in the world than "a great deal with mediocre debt terms".
I can definitely understand where you're coming from. The deal needs to be a win-win for all parties involved. I'll definitely take having more "meat on the bone" into consideration in the future. This deal was two duplexes for potentially $400k. My main hang up was that POF letter, which I'm still trying to figure out how to procure.
And I've spoken with HMLs, but because I don't have ANY skin in the game, they aren't willing to take the risk which is understandable.
