Comments on: What is a mortgage partner?

By: The Dark Side of Real Estate Investing

The Dark Side of Real Estate Investing — Sun, 07 Nov 2010 12:26:22 +0000

[...] people were able to able to obtain a mortgage at the ‘eleventh hour’, by bringing in mortgage partners, however, many of these people ended up losing all of their deposit, and in some cases, even more [...]

By: Everything Home - Blog Carnival | My DIY Home Tips

Everything Home - Blog Carnival | My DIY Home Tips — Thu, 11 Feb 2010 21:01:47 +0000

[...] Uttamsingh presents What is a mortgage partner? posted at First Rental [...]

By: Carnival of Real Estate Features Best in Real Estate Blogs | Delaware County Real Estate & Events

Sun, 31 Jan 2010 15:51:24 +0000

[...] “What is a Mortgage Partner,” First Rental Property, January 2010. Another very interesting post that gives some very good analysis and introduction for investors. Writing could have been a little tighter but solid overall. [...]

By: neil

neil — Sun, 31 Jan 2010 03:19:29 +0000

Thanks for sharing your insights Danielle.
I agree, the hardest part definitely comes after the property has been purchased!
Many new real estate investors, or potential real estate investors do not realize how much work is involved after the initial purchase.

By: Danielle Millar

Danielle Millar — Thu, 28 Jan 2010 22:29:45 +0000

Depends on the property, mortgage etc. Generally speaking I would say with a percent of cashflow 10% -15%.

The hardest part of investing comes after the property is bought in keeping the property well managed, tenanted and equity building.

That in my opinion is worth a lot more than the 25% the investor would get if the mortgage partner gets 25% to hold the mortgage.

Take care,
Danielle

By: neil

neil — Tue, 26 Jan 2010 00:08:03 +0000

Thanks for your comment Danielle.
Just the other day I was having a conversation with some real estate investors as to what the ideal percentage split is for the mortgage partner. Some were saying 10% while others were saying 25%. Any thoughts on this?

Best Regards,
Neil.

By: Danielle Millar

Danielle Millar — Mon, 25 Jan 2010 23:44:21 +0000

Great information. We use this strategy. You could also ask your Joint Venture partner to get a mortgage and alter your split accordingly.
The good thing about a mortgage partner is there are many people who would be interested in investing with their good credit rating if they don’t have cash.