Posted by Faith on January 02, 2004 at 21:38:29:
I have two properties on a blanket mortgage, interest only terms. I want to sell interest in the one property to family members to raise rehab capital so I can sell it within 6 months at a hefty profit for all of us. I am currently living in the property and also have two roomates that help offset the costs. We bought at 90,000 using 10,000 equity from our other home. We have lived in this property for 1.5 years. We do all of our own rehab work so the renovations costs are material only (less then 10,000). I am a RE agent and know that I can sell this property for about 130,000. The other possibility is that I can use it as a rental for 750.00 per month but I have to seperate the property (and get their names on the deed somehow) from the blanket mortgage if I do that. As I see it the real issue is one of cash flow. My intention is to reinvest any money from this property directly into another one. How can I structure this partnership so that it will work for all parties concerned? This will be the first of many future family RE investments.