Well, to all ya guys who don't respect the money: real life example.
I have 8 rentals, 4 of them on such a deal - 50/50 LLC, cash partner finance 100% and I manage and do accounting.
3 houses we bought two years ago for $60K with 5% APR. I manage each property for $100/mo plus take 1/2 month Rent when find a Tenant.
All expenses get paid before mortgage: taxes, HOA, insurance, PM.
mortgage set up as installment for 5 years, after that will be cash distribution of Rent.
Today, these 3 properties worth $100K, they might worth $150Kin 5 years (it used to be the price before the Great Recession). Without cash partner I wouldn't be able to finance these deals, so I'd pass on them.
I did buy my own properties but that's all I could finance.
So, I'm getting the PM fees, rental fees and my properties getting free and clear during these 5 years.
In 5 years, it's going to be 1.5 houses worth $75K, cash flowing $900/mo (right now it's $600/house per month)
Soooo, what would I have without money?!? Nothing, big fat zero.
What would my cash partner had if I wouldn't agree on that? He wouldn't have anything as well because he's out of country and can't even find a decent PM, leave alone someone able to find a deal like that.
Does it still look like "so what"? Looks like win-win to me....but off course, what do I know? I don't know anything about money ;)
