Profile picture for locher0407

Wanting to buy my first rental property with a partner. Where should I start?

I am looking into buying a 2 unit rental property for around 45k with a partner. I am looking for advise on where to start. We plan on financing and would like to close with little or no money down. Is that even possible? Also, the property we are looking at, all ready has 1 unit being rented. Could this help the financing decision of the lenders?
  • September 16 2013 - Lorain
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Answers (7)

determine your ultimate goal with the property and then figure out what you would do with the asset in worst case scenerio's (i.e.-partners death or disablity). Also determine who has what responsibility to the every day management...
  • September 18 2013
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You should start with an attorney and an accountant. You need to have a partnership agreement, especially if you are married or have siblings or if your father is married to a woman who is not your mother. And you need to have an accountant advise you on how to keep from overpaying on taxes.

You're not an "investor" unless you actually "invest" money into the deal, and so be prepared to come up with several thousand between you and to have some cash for emergencies!

All the best,
  • September 18 2013
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Have you considered financing for this property. Make sure you do before you start searching. There are lenders like myself that would be more than willing to speak with you about details of financing an investment property. Just keep in mind that financing any type of secondary or investment property requires a higher down payment and rates than usual, so be prepared for that.

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me.

Good Luck! 
  • September 18 2013
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Profile picture for howardft
There's a couple things you can do. I agree with Brian's comment that you should look to join in your local investment club. I attend these meetings twice a month and it has been a good resource especially if you want to find wholesale properties. Having an active full-time agent looking for you is also another must if you want to expand your search horizon to rentals. As for a rental property, you're going to need money and financing if you plan to own the property in your name or LLC, S Corp, etc. Contact an experience real estate agent and shop around for the best mortgage quote. Good luck!
  • September 17 2013
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Profile picture for locher0407
Thank you both for your insight. My partner who would be investing with me is my father and we have spoke about this for some time now and have an understanding of whats expected from both of us.

I have decided to slow down and get some money together and research more before investing. Any other resources you may have would be much appreciated.  
  • September 17 2013
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Profile picture for JoshBarnettREIB
Your city's local "Real Estate Investor Club"  just google it
  • September 16 2013
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Profile picture for Outer Banks N C
Little to no money down on an investment is pretty much a not going to happen. I can tell you have not gone to speak with a lender so I suggest you both go do that FIRST.

BTW, you two better be good friends and have similar wishes and expectations or the friendship could be damaged -- I have seen that a LOT.

tim
  • September 16 2013
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