Has anyone ever used a credit partner to purchase Apartment building? I have a lender who can do 100% financing (if the property fits a specific criteria) and would allow me to use a credit partner. I may also be able to get some money back at closing. How do you go about finding credit partners? Any advice would be greatly appreciated. Thanks.
Caution w “partnership”
I couldn’t tell you just how many REI deals I’ve seen go bad because the finder (like you) just formed a loose p’ship deal with the money person and didn’t do it right.
What’s right way? Put it in writing, using a well-done p’ship agreement (best to use lawyer here) that sets out who owns what, who gets what moneys when prop sold or rented, who has what rights and responsibilities, etc…
A RE or business lawyer would insert clauses he’s seen needed and the trouble that’s happened when they were omitted so he’ll be worth his fee.
As I’ve said lotsa times, lawyers love loose, informal p’ships because of all the subsequent fees the break-up fights generate.
Finding credit partner
I’d think a little ad on Craigs List might get you some success here:
“Have found great income property, need a partner’s credit (no out-of-pocket $ required) to buy, fix and put into production. Call Al for info (xxx)xxx-xxxx”