If you have been investing in real estate for a number of years it may be more challenging for you to get a mortgage because of the number of properties that you already have. In order to continue to purchase properties your real estate is giving you the opportunity and purchasing power for the down payment but not the ability to get a mortgage.
This credit partner would be someone who has a great job with the government and a good steady income which makes them a great borrower in the eyes of the financial institutions and banks. They would be able to get multiple properties financed for you.
A credit partnership is where the partner is qualifying for the mortgage. Your job would be to help them to be able to do that by preparing a financing binder and helping them by using your team. You would use module three to help to get them to the point where it’s easy for them to go through the mortgage application and approval process.
Once you have agreed on the equity and cash flow split you would use a co- venture agreement to solidify the joint venture partnership. You can find more details about this in the Funding Your Properties – Joint Venture Partnerships course.
There is some maneuvering that needs to happen in order to get Mortgages through your Partners accomplished.
- The first thing you’re going to want to do is open a joint bank account with this potential credit partner so that cheques could be issued with the partner’s name on it. These checks would be used in order to give to the bank in order to take out the mortgage payments.
- The purchase agreement would also need to be in the mortgage holder’s name so that the financing would go through their financial institution. Another option that I have heard of but haven’t seen effectively used is jointly applying for the mortgage with the strong financing partner.
- Ensure that you get a copy of all the mortgage communication. Having your credit partner send you any communications regarding the mortgage. You would also need to track all the renewal information as well.