Posted by Natalie-VA on July 17, 2007 at 08:26:54:
I don’t consider high 600s bad credit. You should see a lawyer in reference to the partnership arrangement.
–Natalie
Will this work in a partnership? - Posted by Tom
Posted by Tom on July 16, 2007 at 06:56:35:
My friend and I are thinking of partnering on this rehabbed property 50/50. He have bad credit. Our mortgage/loan interest rate is likely to go up. He want me to carry the mortgage and have his name in the deed as well. That mean he own 50% of the property yet no liability. I want to protect myself from any fallout. What can I do to get this loan and have him share the responsibility as well? Will an notarized agreement that said that we shared equal liability, interest and responsibility on the property will be sufficient? Thanks in advance for your inputs!
Re: Will this work in a partnership? - Posted by Natalie-VA
Posted by Natalie-VA on July 16, 2007 at 08:44:26:
I would urge you to reconsider doing business with your friend. What is the reason that his credit is bad? Is it from medical bills, or did he just make poor choices? Usually it’s from poor choices. If that’s the case, why partner with someone who makes poor choices?
–Natalie
Check with your lawyer first - Posted by John Merchant
Posted by John Merchant on July 16, 2007 at 07:19:30:
While these deals do have potential for profit, they also have potential for lots of problems and this is specially true for layman written or unwritten agreement.
Having your lawyer hear this and think it through would help him come up with an agreement that’s best for you.
Re: Will this work in a partnership? - Posted by Tom
Posted by Tom on July 16, 2007 at 09:34:19:
His credit score is in the high 600 or low 700. My score is 797 and I’m a first time homebuyer. The loan we are trying to get is FHA 203k Loan. He is not eligible for it because he already owned a property. That is why we are in this situation. What do you recommend? We are trying to get this deal done today.