All Forum Posts by: Justin Dixon

Hello BP,

I am looking to figure out what should you put together to take with you to the bank when seeking a loan? I am looking to build some townhomes with another investor. The land is something the other investor already owns so that a big bonus for us. I am just looking to see what I need to take with us to the bank so we can present everything to them and they agree to give us the loan.

@Anthony P. You are right again! Because of that I am willing to do the pay interest of 8% only on the loan and then pay it all back after I refinance it, I am willing to do a 60/40 split if the investor would rather keep it as a rental since I am a buy and hold investor. I would still do all the work and spent the rent with them. Whats your number?

@Anthony P. Yes I would be getting a bank loan, I need to have the home in my name so I can do the refinance as soon as the rehab is finished or in 6 months. 

@Brent Coombs (thought bubble): I am often curious why so many people think there's only one way to do something, like have they not listen to any of the podcast on BP or read any of the articles? Most of all the investors up here started with little to no money and still made it work instead of spreading negativity. Not surprised the people who are serious about giving good advice and are serious about there real estate investing careers would at least give back to a great site like BP by being a paid member. 

I have 3 deals lined up and I am looking for a business partner to fund the down payment and rehab cost for the property. I will buy, rehab, and manage the properties. The term of the loan from the partner would be for 1 year with interest 8% payments only until I am can do a cash out refinance of the property at that time I will give you an extra 10k plus pay you back your initial loan. If you do think this terms are good I am willing to re work it all just let me know. 

So I have a deal, and I think I have an investor too. My question is how do I set up the deal? I been looking all over BP for partnership deal examples but I haven't found any. The ones I did find where about partnership LLCs. Anyway this is what I am thinking: The investor would give me the money to pay for the downpayment and rehab for the property, I would buy, rehab, and manage the property. And pay the investor interest payments only of 8% on the loan until I do a cash out refinance after 6 months or as soon as the rehab is finish (I have a few credit union banks that will allow me to refinance it as soon as I finish the rehab) and pay the investor back his down payment and rehab cost plus another $10k. Is this a good way to do a partnership? I am a buy and hold investor so this is the only way I could think of doing it and being able to start. I was also thinking doing this but on a payment plan to the investor? Any and all ideas and help would be appreciated.

bump

@Brian Barfoot Yeah I am a little suck there too, I was thinking if I could cash out because it was closer to turn key I would do a 60/40 split on the rent, that way you still making some money and that partner now will start to trust you and will be willing to give you more money to do more investments.  

@Brian Barfoot Honestly thinking this may be the best way for a buy and hold investor. I would even do a 50/50 split where we would split the rent income just to get at least half the deal. 

So I have a deal, and I think I have an investor too. My question is how do I set up the deal? I been looking all over BP for partnership deal examples but I haven't found any. The ones I did find where about partnership LLCs. Anyway this is what I am thinking: The investor would give me the money to pay for the downpayment and rehab for the property, I would buy, rehab, and manage the property. I will do a cash out refinance after 6 months or as soon as the rehab is finish (I have a few credit union banks that will allow me to refinance it as soon as I finish the rehab) and pay the investor back his down payment and rehab cost plus another $10k. Is this a good way to do a partnership? I am a buy and hold investor so this is the only way I could think of doing it and being able to start. I was also thinking doing this but on a payment plan to the investor? Any and all ideas and help would be appreciated.