All Forum Posts by: Brad Ernst

Hello BP, had few questions about partnerships. I have not done a deal yet, however I have people interested in partnering/investing in future deals. I just don’t know the best ways to structure it. Say $100,000 duplex, 20% down-$20,000. I would split half the down payment and have the partner also put $10,000 down. I would carry the mortgage under my name. After all expenses paid, say it cash flows $300 per month. If I tell them I’ll give them 12% return on their investment. $10,000 x 1.12- $11,200 And say I give them half of the cash flow per month ($150) so for them to get all their money back would be 75 months. $11,200/ $150 - 74.66months First, am i figuring all this correctly with these numbers or way off? Two, would someone really want to wait 75 months for their $10,000 investment? Any help for this newbie would be high appreciated, and if anyone has examples of partner deals under $200,000 I would love to see the numbers. Thank you.

Hello BP, had few questions about partnerships. I have not done a deal yet, however I have people interested in partnering/investing in future deals. I just don’t know the best ways to structure it. Say $100,000 duplex, 20% down-$20,000. I would split half the down payment and have the partner also put $10,000 down. I would carry the mortgage under my name. After all expenses paid, say it cash flows $300 per month. If I tell them I’ll give them 12% return on their investment. $10,000 x 1.12- $11,200 And say I give them half of the cash flow per month ($150) so for them to get all their money back would be 75 months. $11,200/ $150 - 74.66months First, am i figuring all this correctly with these numbers or way off? Two, would someone really want to wait 75 months for their $10,000 investment? Any help for this newbie would be high appreciated, and if anyone has examples of partner deals under $200,000 I would love to see the numbers. Thank you.

Steve Vaughan Luke H. Thanks for the responses! When seeing seller financing do you see the buyer doing short term loans with the seller? Then refinance into a bank after a certain time?

Hello BP, had few questions about seller financing. I know some one that is getting out of the rental game and selling his properties, few last year and some this year. He hated paying those sold properties obviously. So what would it benefit him by doing seller financing? He's an older gentleman so he doesn't like the thought of managing anymore also. So he would still get monthly checks, I would be the Manager, but would he still have to pay taxes by switching the title into my name? Also what are some pro and cons of seller financing and some steps to start, thank you for responses.

Hello everyone, I had a few questions about FHA loans. First of all, is it possible to partner with someone while using a FHA loan? For example my partner and I both have our names on the property but he would be the only one living in one of the sides of a duplex. He would bring the down payment and live there while I would get the loan through the bank? Sounds too good to be true, so it probably is but thought I would ask. Thank you in advance for help.

Thanks everyone! Jared Althoff I work for All Seasons heating and cooling. So if you have any questions or issues let me know!

Hello BP, Just like a lot of people on here, I've been sitting back reading every post on here trying to take in as much as possible. I'm looking into single family homes, flip or buy and hold. At 25 years old I don't have a large amount of capital, but the thought of creative financing is extremely exciting. I will have $30,000-40,000 in equity in my personal home that I would be able to use in 2 years. But I don't want to sit back and wait, I would love to start investing sooner then later. As a profession I'm a HVAC technician which allows me to be in thousands of homes each year, learning to look for mechanical and structural problems. I also do some plumbing and electrical. If any BP members have any questions or need help with any of that, I would love to trade knowledge. I would also appreciate people's opinions on the best books to start out with for real estate investing say top three books. Thanks for all the help and can't wait to work with some of you in the future!

In that area it's scattered, but the Almond st, Ellis st, and locust st, is more lower end properties in my opinion. Clarke College is not far from that area, but I believe a lot of the students stay on campus. Most of the Loras college and University of Dubuque students live around the University st, Loras boulevard, Alta Vista st, Clarke dr areas. Again just my opinion. Hope some of this helps

I live in Dubuque and if you're referring to the multi family on Almond st, that is a low income side of town and are in very rough shape