All Forum Posts by: Kyle Swarts

@Tim Herman well that's good to know! Lol thank you!

Hi guys, brand new to real estate and have been listening to the bigger pockets podcast. On an episode someone mentioned using peoples low interest savings as property investments with a higher return from you.

So from a legal and tax perspective, how does a monthly or annual pay out work? and is it worth it for someone investing smaller amounts like $20,000 with a 10% interest rate just for example.

If someone is passively earning $2,000 a year, but being taxed on it harshly, it might not even be a worthy investment for them at all.

I was wanting to finance an FHA loan on a 4 plex using this strategy. I have done a whole lot of shopping around, but I'm thinking a down payment of around $10,000 would be required. Add in closing costs, lawyer fees, any repairs that are necessary, etc, I'd like to have an investor for around that 20-25k mark for the first one.

Any advice is appreciated thank you!