Timeline for What risks am I taking if my well-off close friend is asking to use my credit to flip a property?
Current License: CC BY-SA 3.0
5 events
| when toggle format | what | by | license | comment | |
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| Mar 1, 2017 at 18:28 | comment | added | ChuckCottrill | Agreed that work and knowledge should be rewarded and worth some amount. The OP needed to understand the significant value of their part of the investment. The actual percentage split should be negotiated by well informed parties. | |
| Mar 1, 2017 at 9:43 | comment | added | Dennis Jaheruddin | The 'Fix the deal' section is a bit extreme, its true that 50-50 would not be fair, but the work and knowledge should be rewarded somewhat in a fair deal. If I really were to do this, I would go for something like: You may at any time decide whether/when to sell. When selling the property, you get first right to 90% of the original value (so if it drops 10% you don't feel much pain), he invests whatever he likes and if you sell above the purchase price you get 50% of the extra value (value, NOT profit). | |
| Feb 7, 2014 at 17:13 | comment | added | ChuckCottrill | Suppose you decide you want to purchase a house. Now the bank looks at your mortgage and sees that you already have a mortgage. They are going to more closely examine the loan application, and since you have a house payment, your debt-to-income ratio is much higher, you may be denied the loan. Or they may judge that you are trying to get an "investment" loan, and deny the loan. | |
| Feb 6, 2014 at 1:21 | vote | accept | CommunityBot | ||
| Feb 5, 2014 at 3:22 | history | answered | ChuckCottrill | CC BY-SA 3.0 |