Hi REIN fellows, I have a potential deal that I`m not sure how can I structure it to create a win-win situation. I`m just becoming familiar with the Quick Turn terms (I`m attending Peter`s Vancouver workshop next weekend) and this potential deal just came across. I already own a couple rental properties, but I haven`t done any creative deal before. Here is the situation:
Friend of mine that has been renting for the last two years wants to buy his own first house, but he wants it brand new. He`s looking at a pre-built townhouse in Calgary for $315000 which will be finished and ready to move in some time in September this year. He has no money for down payment, but willing to save as much as he can during the next months to get the d.p on time. Problem is that he just can afford 5% of d.p, but since he has a work permit visa that expires in 2012 the bank is asking a minimum of 10% d.p in order to get it pre-approved. So base on this he asking me to help him out with the other 5% and I told him that we can make a deal where both of us win.
I`ve been thinking in rent to own as an option where I can generate some cash flow or make a JV partnership where he will cash me out in let`s say three years when he refinances it, but there won`t be any cash flow for me in the main time. I appreciate any inputs.
Thanks in advance for your help,
Friend of mine that has been renting for the last two years wants to buy his own first house, but he wants it brand new. He`s looking at a pre-built townhouse in Calgary for $315000 which will be finished and ready to move in some time in September this year. He has no money for down payment, but willing to save as much as he can during the next months to get the d.p on time. Problem is that he just can afford 5% of d.p, but since he has a work permit visa that expires in 2012 the bank is asking a minimum of 10% d.p in order to get it pre-approved. So base on this he asking me to help him out with the other 5% and I told him that we can make a deal where both of us win.
I`ve been thinking in rent to own as an option where I can generate some cash flow or make a JV partnership where he will cash me out in let`s say three years when he refinances it, but there won`t be any cash flow for me in the main time. I appreciate any inputs.
Thanks in advance for your help,
