My mother does not own a home and frequently gets depressed that she is not in RE at all, especially since most of her the wealthy people she knows made their money in RE AND that she is a part-time RE agent.
The Vegas prices have blown her shot at owning (she feels) because she has no money really that she can afford to tie up in the property. She does however have solid credit.
Anyway, an idea that presented itself was that she comes to Houston, finds a rental prop, qualifies, I front the cash, and we negotiate a split on equity, cash flow, and when I get my down back.
So, would you do such a thing? If yes, what should terms be? Something like:
- 50/50 split on profits.
- I am not responsible for expenses or anything since it is her prop.
- 10% of her monthly profit gets paid to me until my down payment is refunded @ no interest.
- other provisions on getting my equity, selling,etc.
I was just thinking that this could be a way that she gets the ball rolling and sheds the negative attitude and I can make some extra cash.