All Forum Posts by: Paul Baghis

My wife and I currently own a 6-unit and a 3-unit. We are looking to purchase another 6-unit, but we don't have enough cash ourselves for the down payment. So we'd like to bring our parents in as partners for this investment. It would be something like 50k from us and 75k each from them, for a total of 200k to use as a down payment.

Her parents are not U.S. citizens, and my parents have only average credit because of a business bankruptcy in their past.

My understanding is that banks want every partner over 20% on the loan. How could we structure this to get around that, so that myself and my wife are the only ones on the loan?

My thoughts were that our parents would give us the money, we would buy the building and put it in the name of an LLC that specifies our partnership arrangement.

Thoughts and ideas? Thanks!

My wife and I own and live in a 3-unit house, purchased in 2015 for $400k with conventional financing and 20% down. Last year, we took out a HELOC on this property and used that (plus some cash of our own) to purchase a 6-unit for $875k with commercial financing and 25% down. We now own 9-units including the one we live in, and both properties cash flow.

We'd like to keep going and acquire more units. What would your strategy be if you were in our position? Not interested in anything too risky as I feel we've set ourselves up well for the longterm. Our personal cash is basically tapped from the last purchase. Do we now play the waiting game and let the combination of equity growth and likely appreciation do their thing until we're in a position to borrow again? Or are there other options on the table in the nearer term?

Thanks in advance for the suggestions. We're in the Portland, ME market FYI.