How Do I Do This Right?
I have a friend who wants to be a cash partner. We would use his money to buy the properties and I would do the leg work. How can he secure his money after we buy the property. All properties would be bought in my name. Do we write up a note and record it against the property as a lien. Please help, confused!!
A few options:
1. Record a note/mortgage against the property and have your cash partner act as the bank. Your cash partner gets interest on the money used. For you (the investor) this is far better in my opinion.
2. Form an entity where you each have ownership (not 50-50--you should have one defined person in charge or problems may arrise). The profits are split in whatever manner you wish.
There are other options but these two are the most popular.