Quote from @Salvatore Lentini:
@Joe S. - My brother and I are partners so we do everything 50/50. All our deals in the beginning were done with private lender money (interest only). We'd buy cash, rehab, refi and pay them back. In recent years as deals have gotten larger and the down money and capital needed for rehab has increased, we've used a combination of banks and money partners. They get equity but we don't have to make interest payments (because they are partners) which is especially helpful in the first year or two of owning these larger commercial properties if we are in the process of turning them around. So long story short, I'm 50% owner on many properties and 25 - 49% owner on remaining properties. But as the properties get larger that smaller percentage = a much larger monthly income than the smaller properties where I have a larger percentage ownership.
@Salvatore Lentini curious about your post since I’m planning to follow a similar path. Thinking back, were there ways to just jump into larger deals from the start? How are those early deals doing, if you still have them?
