question about financing with partners

General Real Estate Investing
1

good afternoon,

My friend is selling his existing rental with good cash flow because he’s moving out of state. I’d like to pick it up, but have all of my money tied up in my business right now and it’s obviously impossible to find 100% or near financing right now. I have another friend who is already into REI, who wants it for himself. He mentioned partnering with me on it, but both of us are unsure how that would work. Would we just register an LLP and purchase the house as the entity? If he puts up all of the necessary down, how does that work on either dividing the monthly cash flow or dividing the equity once sold?

Your advice is appreciated…

J

2

Depends on how you want to make money on the property.

You could split the monthly revenue, or you could put all the monthly revenue back into the property and then split the diff when sold. Me personally, I prefer the bigger chunks of money.

GooD LucK! :beer