All Forum Posts by: Sequoia Austin

Thanks so much Ryan. I haven't considered her to be a part of the title and loan actually! Would she be able to supply the down payment (without the gift restriction) if she is on the title but I do the loan myself? 

I need some help understanding home buying finances.
A close family friend and I want to begin RE investing together. She has the cash and I have the ability to house hack and take out a loan. I was hoping to use her cash as a down payment and I would get an FHA loan and live in the property. We would then sign an agreement on the split of cashflow and equity, as I've read most partnerships are handled.

I recently learned that I would be unable to use her money for the down payment unless it was a “gift” to me (without expectation of getting the $$ back) if it were to go toward a down payment on a house. I was a bit confused because I thought this was a regular practice for creative RE financing!

What am I missing? How can we utilize our partnership to finance a home!?

Thanks in advance!

Hey, thank you both for the responses! It's given me some more research to do and more verbiage to use. Much appreciated! 

Hello BiggerPockets! 

I'm currently developing a presentation to get financial assistance from a long time friend (basically family). This friend and I have always talked about starting a business together and my recent fervor for real estate investing as sparked the opportunity to make our dreams a reality. My passion for hitting the books and doing the dirty work is what I bring to the table and my potential partner has the ability to bring the capital. 

I'd like to come to our first meeting with some examples of contracts, documents, etc. that will help them feel more secure in how potentially their money will be invested and how much their return could be and when they could get it? 

How do others typically start partnerships? Is there a place I can find some example terms of a private lending transaction to base ours off of? What if it just isn't just a lending situation but also a partner in other aspects of the business other than the financials? 

Thanks in advance to the community for your support!