All Forum Posts by: Gabriel Oquendo

I agree with John about settling on a property and running the numbers.

However, if it were me once the market and property were identified I would form an LLC with an operating agreement that states what each members contribution and responsibilities are. I would then get an EIN and a bank account and transfer the funds in order to close on the property and then use as an operating account for the income and expenses so everything can be tracked.

I have done deals in a similar fashion as a partnership.  There are other ways to do it, but this way is easy.  If you both qualify for traditional financing you could do an operating agreement/joint venture agreement and open joint accounts in a similar fashion.

 As mentioned, a lender is not going to put money in an account. When we finance short term stuff we wait until we have an asset, then we will underwrite the deal and use a title company like a traditional closing. 

@Gabriel Oquendo

I think both of the prior responses are great advice. I would add....does your partner have rei experience? The reason I ask is it seems like everyone wants to be a rei until it is time for cash to leave their hands. It is very normal for people to have second thoughts or get cold feet. I would want to make sure this person understands the risks involved fully before getting any deal under contract. It would be unfortunate to not be able to close a deal because your investor backs out at the last minute.