Investing With Partners

Investing with partners is a great way to own more properties. As an experianced investor I use partners to reduce the amount of loans in my name and be able to buy more properties. That helps keep my credit score high while owning several properties. After 10-12 loans in your name the banks don't want to lend to you as eagerly as they once did. Sometimes my partners have a higher credit score than I do and that gets me a better interest rate on the loan. I pay my credit partners differently than I would a money partner. The credit partner gets about $500 up front and around $2,500 when I sell the property. If a partner wants to put up both money and their credit then they would get a percentage of the deal at closing. Typically that would be the same percentage as the amount of money they put into the deal when we buy it. On a $200,000 dollar property that we put 10% down, $10,000 each, the partner would be a 50% partner. I would do a 60/40 or a maybe 55/45 split with them. Since I'm the one with the knowedge and the one making the deal happen I'll usually take 60% and give my partner 40% at closing. There are many arrangements for partnering and it's best to have it drawn up by an attorney to keep it clean from start to finish.