Hello,
I presently own a 12 unit apartment building that bought with 0 of my own money…I used lines of credit…a seller second…and bank conventional financing to get the deal done. Throughout the process of the purchase, I started thinking about asset protection and the like and realized that I could grow much faster if I were able to recruit limited equity partners (like steinbrenner did with the Yankees). I could have my company remain general partner and just take a salary, but use the limited partner money to create the down payment on the deal. Any thoughts on this…
Also, I am looking at several properties in new hampshire that have seller funding… even up to 90%. I believe that if the seller were to go into a new company with my company and pony up the money (20% + closing costs) we could continue with repayment as per a mortgage terms, since members of a corporation are able to loan the company money with repayment terms…the repayment terms of the loan could be what are agreed upon by the the parties involved and the seller would get an equity position…perhaps for life for doing so…again…am I missing something here? I vaguely remember a thread about a person acquiring large 200+ unit apartment buildings using an equity partner and then refinancing them out of the deal in a year or two. All thoughts would be great on this. Thanks