How To Structure - I Put Up The Money, My Brother Lives There.
About 2 years ago, my brother moved to Pasadena, Ca for work. Instead of he and his buddy renting an apartment, I offered to buy a condo and rent it to them, but they had to live in the newest apartment development for $2150 per month.
Now my brother is engaged, and wants to buy a place of his own. He really does not have much cash to put down right now, but makes good money and gets large periodic bonuses.
We would like to partner to buy a condo, but how could we structure this deal? He and his fiance would ive there, and I would put up all of the money for the purchase and presumably for renovations, until he gets another bonus and can pay back his 1/2, but they would make all of the payments.
I am not worried about there being problems down the line as long as we come up a solution that is fair for everyone and agreed to before we get into anything.
I am thinking that I can put up the money for the purchase and renovations, and he can pay interest on his 1/2 until it is paid back. But after that, what percentage partner can I be since they will be making all of the payments? Should I be a 50% partner and treat them as renters? That seems like a little much to me since they are paying all the bills. I wish I could lend them the money and be done with it, but if I am taking all the risk, I would like to be a partner.
Any ideas would be appreciated.
Thanks, Joe
A simple answer: WRITE AND PRESENT A KILLER BUSINESS PLAN!
If you would like some help. Send me a note.
Have you talked to the guy at all? Is he unhappy with is current master tenant?