All Forum Posts by: Courtney James

Thank you for the responses! 

Small community banks is actually what I had suggested to him. In response to the suggestion of partnering to pool the 20%, I do have the funds to meet him halfway and get to that 20% mark but wouldn't the issue arise that down payment money cannot be "gifted"? 

I personally do not want to be on the note as I will be applying for traditional lending for another opportunity in January 2021. 

@Neil Henderson @Zeke Liston @Amy Kendall

Hi friends! 

I invest in the Stark County, OH and I am partnering with an out of state investor who wants to purchase his first property here. He plans to go the traditional financing route but wants to put less than the 20% down. What are our options to be able to put a lower % down?

Thanks in advance.

Hello all!

I am starting this thread to gain some insight on how you would approach structuring this partnership.

I am located in Ohio and I currently have three deals under my belt in regard to the rental properties I have (7 doors total, fully occupied). I have used traditional financing, seller financing and cash so far.

I have an associate from out of state on the west coast, who is looking to invest where I am at locally and partner on a deal. This would be their first rental property, they want to leverage my experience and have me lead the property management side of things.

On their end, they would be the one securing the financing through a loan, and I planned to match whatever they put down on the property to complete repairs and get us rent ready.

What steps would take to solidify this partnership and how would you split profits?

All thoughts are welcome. Thanks in advance.

@Kynell Martin what is you end game with this property? Are you looking to wholesale it or you mentioned trying to secure a loan, so does this mean you'd like to hold on to it? 

Since you are pressed for time and do not have the funds to buy it cash, I think your best bet is to get off via wholesale. Do you have potential buyers interested? 

@Travis L. you should be able to make an offer with a financing contingency that will allow you time to secure the funds. I would talk to a couple banks and reach out to your local REIA connects (if you are a member) and see if there are private lending opportunities. If you do not have funds for a down payment, consider partnering with someone who does.. of course this means splitting a percentage of the cashflow but sometimes you have to give to get, especially you are the one in need of help.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $145,000
Cash invested: $20,000

@Marisa Alvarez

I would look for a new tenant and tell her if she does not have the deposit, she will not be moving in period! 

Don't start off giving into unwarranted demands as it will set a precedent for her daughter to act nasty going forward. I would prefer to wait for the right tenant than deal with one with a nasty attitude. I would tell her you plan to continue to advertise until a lease is signed/deposit is given and first come, first serve on that. 

@Rebecca Graziano

Is this property one that actually fits into your investment strategy or are you considering financing it because you don't want to lose the deal? 

If you finance and keep it, are you looking to flip it or hold as a rental, and have you run the numbers for both scenarios to see if the profit margin makes sense for you?  

For subject-to, you could consider doing a double close, this way you do not have to make the the couple uncomfortable. Also, if you have buyer in mind you would to work with on this, you can introduce them to the couple as your investment partner, this may make everyone more comfortable. 

@Carol Labbe That was my fear! I didn't want to sink money into something that would be worth the value, when I could use the same money in my business in other ways.