Anybody with experience or views on getting money partners involved in IP? This has been mentioned by Steve in his books as an option if you don’t have cash available for 20 % of the loan? I guess the idea is to find people that are money rich and time poor.
Now, what I’d really like to know is how would the deal be set-up for YOU to become a money partner in investment property? What percentage ownership, share of epxenses/ongoing profits/losses, capital gains would you be willing to accept for putting 20% cash on the table in a IP deal?
Best Regards, Rune
Hi
You could be lending money for a fixed interest rate. eg. you lend 20% deposit for , say, 15%.
or
you could put in 20% deposit and split all costs and all income 80/20.
With the second, if you are not on title it can get messy with working out tax savings etc.
Terryw
Discover Home Loans
Parramatta
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In the current market I’m a little worried about borrowing 100% unless it’s an increadabily good deal.
However, the other option you mention is what I’d like to explore: anybody with experience in this? Do you mean 20% ownership for moneypartner with a 20% cash deposit? What about 20% ownership but 50-80% of profits from capital gains (with a clause not to sell for 5-7 years or at a loss) while getting 20% of positive (or negative) cashflow. Would that make you intersted? Anybody?
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