Hi fellas. I've been away from these forums and property investing in general for quite a while. I've been putting my money in the markets instead. A 'deal' that my friend wanted to work out made me think about going back into property, or at least find out more if it would work. Not sure if this falls under 'creative investing' but here goes.
Basically he is tired of paying rent, and wants to buy a place. Can't quite afford the up-front lump sums nor a full repayment on a $300-400K plus loan. As an aside, even if he could, he doesn't want to tie up all of his money in a property since he invests in the market as well.
His idea was to basically split the cost between several 'investors'. E.g. He would take maybe 30% share of the property. And the remaining 70% would be financed by other parties. He stay on as a tenant and pays rent at market rates. He gets to turn part of his 'rent' into equity. The other parties get the benefit of a tenant who will take care of the place, and part of the rental income that goes with it.
I think that was the gist of it. He hasn't crunched any real numbers on this, but I figure someone might have done a deal similar to this on the forums.
Your comments people?
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