All Forum Posts by: Antonio Similia

Hi Bigger pockets community!

So basically need help understanding whether or not 3 way partnerships can be good and if any of you have experience/advice to share. My father and I just closed on our third multi family last month and have so far had a great partnership with investing (we are close)

Personally I have been reading about flipping and thinking of getting into the flipping scene. One of the hardest things with flipping it seems is having a good contractor to work with but recently we've been working with a young talented contractor who had done some nice work on one of our properties and he has expressed interest in getting into flipping. His problem is that he doesn't have good credit or the cash to get into it alone just the skills and workers in his company. So he mentioned that he would be interested in partnering with me since I have spendable cash.

I'm interested in investing with him as our contractor and partner. With my father as well of course who I believe would definitely want in as he also owns half of our "spendable equity" that we have available.

My questions are, how would we split the profits once the property sells at or around the ARV, what percentages have any of you used or recommend to use with a three-way partnership? Is it worth investing with a contractor who wants to make profit but doesn't have much cash to spend? Still seems like more of a risk on my father and I's part whereas the contractor would only be bringing the work and job organization aspect to the table and not much money.

Idk just figured maybe we could discuss it if anyone has experience in this. Thanks for reading and happy investing!

@Wesley W. @Tom Shallcross @Tchaka Owen @Jennifer Rysdam @Michinori Kaneko 

Thank you guys for your replies! This was truly helpful. I do plan on sitting down with my father and making a legitimate plan that we can work towards. My goal as I stated before is to grow my portfolio, maybe even get into flipping properties. So for me it would make sense to keep my 30 year mortgages. For someone else I can see the 15 year or less working for them. 

Real Estate is one of the best investments and I get the point here that a 30 year loan gives investors more money in their pockets to buy more which in turn will make more in the long run. Although it would be nice to own outright there really is no "need" and I would probably put myself and my father in a standstill or at least slow ourselves down tremendously in further investments moving forward. 

I hope to be apart of this website to grow as an investor and help others as well. Just need to find that next property! (which is tough right now)

Thanks again everyone this was good info and hopefully this will help someone else too.

So I just wanted to discuss the pros and cons of a 30 year vs a 15 year conventional loan on an investment property. My first post to these forums as a new member to Bigger Pockets!

Quick background on my situation: I'm 28 years old married and bought my first property in 2012 when I was 22. I own 2 properties now both with my father 50/50 split on everything both loans in my name. A large Duplex 4 bedrooms each side purchased in 2012 (FHA loan 203k rehab) and refinanced in 2014 to a conventional 30 year. The other is a three family purchased in 2016 (FHA Loan). The three family has not been refinanced and still holds the original loan. Both properties take in a total (between the 5 apartments) $7250 in rent. The mortgages add up to $4131 leaving me a profit not including expenses of $3119 a month split 50/50. The Duplex has at least 200K in Equity or more from last appraisal. The three family has not had a recent appraisal but seems to have conservatively about 50K in equity in my market.

This is just the basics of my situation. I'm just looking to bounce off Ideas here from experienced investors and maybe investors that have had a similar situation about whether it would be smart to refinance both loans to a 15 year mortgage? I also am looking to increase my portfolio moving forward in life so I'm wondering if this would hinder my ability to do this, but it seems like refinancing and having both these properties paid off by the time I'm 43 or so would be pretty great! Plus my father who is 51 would have the added benefit of having these two properties paid off by the time he's in his mid 60's, probably about the time he will be retiring.

My Father is basically my "Private Investor" so to speak because he has cash and I have more time and energy to put into the ins and outs of finding deals and dealing with tenants. So finding more rental properties may benefit him and I once retired.

Anyway thanks for reading! Bigger pockets seems like a great place to get in touch with investors and I'm glad I found this resource.