Win/Win???? - Posted by Kim Crisp

Posted by John J. on April 11, 1999 at 17:08:04:

I’ve done this on about 10 properties and have 4 different partners. We form a partnership or LLC. I buy the property in my partner’s name (I or assign). He comes up with the downpayment and puts the mortgage in his name (I am maxed out on my 4 FNMA loans). After closing he quit claims the property to the partnership or LLC. I do all the work and they are solely investors. We split the profits about 50/50 depending on what % of the purchase price they have to come up with. When we sell they first receive their original investment back and the rest is split according to the %/% split. We file partnership returns and have formal agreements which also have a formula for in case there happens to be a loss and they spell out each partners responsibilities.

E-mail me if I can help further.

John J.

Win/Win??? - Posted by Kim Crisp

Posted by Kim Crisp on April 10, 1999 at 18:22:57:

I am a rookie investor who runs into some pretty good deals now and then. My only problem is, I believe in the old “buy and hold” theory and after my first few deals, I have six properties and no more cash in which to purchase other properties. I do have other people who are willing to loan me the down payment money but if I want to hold on to the property, How can I structure the deal so my “partner” wins as well? Does anyone know of a home study course that might address this issue?

Any insight into this would be greatly appreciated!!!
Thanks ahead of time!! K.C.