All Forum Posts by: Matt Liu

If I have a real estate partnership, how do we decide when to sell the property? Is it true that under the Uniform Partnership Act, anyone in the partnership can request out of the deal pretty much when they want? Basically, at least from what I read, they can force the other partners to buy them out of the deal at any time (based on current appraisal), and if they can't afford it, they can actually force liquidation.

Actually I think many individuals approaching retirement these days would be happy to put up half the down payment and use all their own debt and take title . Why? Because they are going to be making 20%+ cash on cash on a steady investment. They are not going to buy investment real estate alone because they don't know how to find good deals like I do, and they're scared of many aspects of managing the asset, but I'm not.
I believe this is a very powerful approach, and yes there are some kinks to work out, but it can be tackled.

I just realized today that credit partnering is a fantastic thing. If I find the deal, and a credit partner gets the money at 3.75% (or even at portfolio loan rates), we split the downpayment and split the profits 50/50.
The key is to get a high LTV which is possible through a few approaches I learned.

The reason I like this idea is because I calculated that each deal (good deal) I do with a credit partner will bring the account about 800/month and cost us 400/month for debt. (roughly).
That means each deal increases the credit partner's income by 10k which makes him eligible for yet another loan that costs 400 or 500 a month. We both will just keep paying more in debt service, but receiving TWICE more in income. Am I wrong?

Can your equity partner do a HELOC on his share of your property? Say he has a 70% share, and the value of the house goes up to 200k, can he get a HELOC for 140k?
Does it matter if you split profits 50/50 - I assume no because the equity position is what matters right?
Also how does the HELOC lender verify that you have 70% equity?

I think it's called an unconditional release. I would want to do it on listings that are over a year old and no longer important to the realtor.

What about having your funding partner go in on an LLC with you. That way when you make offers, you make it using the LLC name. There's still the possibility of disagreement when it comes to actual disbursal, but at least legally, technically, this is a legit work around, no?

I have a Proof of Funds letter from my father, my "funding partner" that says
"xyz funds are available for immediate transfer or use by MattLiu at my discretion."

The problem is when I went to make an offer, one realtor said what happens if we are about to close and funding partner's discretion decided that it is not a good deal.
He makes a good point.
How do I get around this. Do I have to make the letter approve of the address each time?

Thanks!