Her Credit My Capital...hmm
Is it possible to take advantage of someone's good credit and combine it with another's capital? :-? If so how does it play out? I would hate to put up all of the money for downpayment and closing if I had no legal ties to the property. If any of you have ever found yourself in a situation like I am describing please let me know how it went.
i'm currently in the process of doing that now. i'm going in with a pal who's a good friend of mine so we're splitting profits 50/50.
however, i've seen local syndications where 3 people are involved. the person who's credit stands to suffer gets 50%. the money person gets twice the appreciation times the percentage they put down. the third person gets the rest.
eg, if A puts 20% of the price as a down payment, he gets 40% of the return.
B who signed the mortgage gets 50% and C who inhabits the property and looks after it and makes the payment and enjoys the tax relief gets 10%.
Thank you for your response. How does it work for qualifying for a loan? Everyting that I have seen indicates that the borrower would have to have had the money for 6-months. I don't really want to give up the cash for them to hold for six months. Have you heard of this requirement?
Kacey
I have never seen seasoned money for six months. But here is a sugestion, Put the money in a trust with both of you as beneficiaries and you as the trustee. The other person will not be able to get money, but will be able to use as a sources for the money.
Lori
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