All Forum Posts by: Daniel Bernard

I'll try to keep this as concise as possible. I have a silent investor who is willing to partner with me in the amount of 50-100k. It's an incredible opportunity for me because this person is very open and flexible to how the deal is structured and is interested in a long-term partnership.

My main questions are:

1. How would I be able to access these funds for a downpayment? 

2. Would I be best served to create an LLC, put both of our names on it, and have my partner transfer funds into the LLC?

3. How can I best setup a long-term partnership for my partner's taxes?

I've tried to search for this information, but almost everything I see has more to do with finding the right partner and structuring the deal with them, not actually using the funds or how to use the funds if they just want to be a silent investor. 

Thanks!

@Don Konipol Thank you for the response and clarification on a hard money loan. You're correct, that is the terminology I was referring to. 

Honestly I didn't think I was in a position to invest currently, but I feel like half of the bigger pockets podcasts I've listened to are from people that started with little or no money and found a way to make it happen. Obviously I know the results are not typical or easy to do (hence them being on the podcast), but I'm trying to overcome the assumption that I just can't do it.

Do you have any thoughts or things I can research to find more creative ways to try to invest with no money down?

Thanks again for your time!

I’m new to real estate investing and think I may have a good deal, but I’m a little unsure of my next step and thought someone would know!

Deal breakdown:

100k multi family 4-plex that the seller inherited from her parents. It’s been on the market for a while because the agent says that the buyer doesn’t want to do the work to provide the rent records etc. until late in the process. Evidently it was on paper from her parents. She says the property cash flows every month and has tenants locked in.

My questions: 

1. Setting up the financing offer: I’m trying to understand how to structure a proposal to be interesting to her but also good for me. I don’t have a ton of money for a down payment which is my biggest hurdle.

My thought: offer an option on a 30 year scheduled with a 5 year balloon with nothing down, but I’ll pay 10k over asking price. This way I can get right into a cash flow situation, and have 5 years to refi the loan with traditional lending.

2. At what point should I ask to see records/do a walkthrough etc.

3. Setting up the mortgage documents: should I find a lawyer? Or will a title company help with that?

4. If she says no, should I try to get a hard money loan? With a hard money loan do you still have to provide a down payment, or is it just a lump sum that’s not connected to a property and just based on your credit worthiness? Trying to understand the hard money process. 

Any other big things I’m missing as far as trying to understand this property? Please poke holes in this/tell me where I’m off base. I think I may have found a great deal but don’t have the down payment ready right now so I’m trying to get creative. 

I’m sure there are things about these topics, but maybe not all together.

Thanks!