Posted by DaveD (WI) on October 29, 2003 at 15:21:27:
Frankly, if I were putting 35k down I’d want to be controlling much more than a 170k investment. That’s 20% down any way you cut it. The thing is, you’re not even controlling that much, it looks to me like a loan. Something like they split the profits, you fund the loan? IMHO, if you (they) are going to be taking over financing, best do it with little or nothing out of your pocket. If you are bound and determined to do this deal, why not have your partner assign it to you for a few thousand bucks?
Do you realize with a little effort, and the same 35k, you could be controlling 350-750k by yourself without any partners? The key is to tie up properties with very little out of your pocket instead of a lot.
Have the seller refinance, if he wants that much cash. You can do better than this. Any time you write a huge check you stand the chance of not sleeping well at night. Find a better way to put your home equity to work. Until then, guard it with your life.