All Forum Posts by: Liam Galbraith

@Justin Young Hi Justin, I'm looking to structure a similar deal where my investor gives me the down payment on a deal through the use of a promissory note and we split all profit and equity 50-50. However, I'm stuck on how to use my investor's money for the down payment but take out the mortgage under my name. Did you just season the investors money in your bank account or open some type of joint account?  Any tips appreciated, thank you!

@Michael Evans I'm attempting to do a joint venture with a friend of mine and we will split everything 50/50, he puts in the capital while I manage the deal. However, I'm stuck on how to use his money for the down payment if I want to get the mortgage under my name. Any tips? Do I just need to wait to season the funds from my partner?

Hi BiggerPockets Community,

I am looking into how to structure a real estate deal through the use of a promissory note. The situation is this: I will find and manage the deal, while my passive investor partner only wants to put up the capital for the down payment. I will take out the mortgage under my name.  We will split everything 50/50. I will then pay my investor a quarterly dividend for their half of the profits. 

We would like to structure the deal through a promissory note that states all of the terms and partnership structure. However, I don't understand how the process works once it comes to the financing stage. My questions is:

1. Once we have the note signed, and my investor gives me the capital for the down payment, is this just considered a 'gift' I put into my bank account and must be filed and taxed as a gift payment if I want to take out the mortgage under my name?

All help is appreciated thank you!

@Evan Polaski Thanks Evan I appreciate the tip, the first one I'm doing is definitely a budget BRRRR so anything that helps save money I'm willing to put in the work for.

@Bob Okenwa Hi Bob, thanks for the tip I appreciate the help!

@Will Fraser Hi Will, thank you for the recommendations on the reads I'll take a look at them!

@Andrew Syrios Thanks Andrew that's great to know!

Hi BiggerPockets Community,

I'm a first time real estate investor looking to do my first BRRRR deal and figured I would start with something easy like a cosmetic rehab as I don't have a construction background. I'm currently learning about material costs and how to install everything I'll need to. Does anyone have a material price estimate sheet for items like flooring, paint interior/exterior, and basic wood siding etc. or have a suggestions as to where I can find one? I've tried putting together my own excel version but feel like I have nothing to compare it to. Any suggestions welcome, thank you!

@Dan Weber Hi Dan, thank you for the reply I kind of figured the hard money option is the way people typically BRRRR so quickly. I'd like to be able to refinance sooner because the light rehab will only take me about 30 days and would like to be able to refinance sooner so I can use that money for more deals.

@Mike Shemp Thanks Mike I appreciate the heads up I wouldn't have thought to even look at reviews I've been so focused on finding one that will work for my circumstance.