Here is an example of a great way to build partnerships one deal at a time.

Starting with and average three bedroom house having a conservative current market value of about $100,000 in a good neighborhood.

This home can be purchased for $70,000 including closing costs.

Partner A located the house, negotiated the contract, arranged closing.

Partner B helped locate the money partner (partner C) and manages the rental house or lease option

Partner C Funds the deal at a below market interest return on his cash plus part of the equity

The rental house is rented with a positive cash flow of $265 net monthly after paying interest to partner C taxes and insurance.

In this example partner A gets 40% plus 5K marketing fee (included in the purchase price), partner B gets 40%, and partner C gets 20% plus a 5% additional yield on his cash invested.

Can you see how powerful this can be for all involved if multiplied by 10, 20, or 100. Partner C gets a great return secured by a solid investment home. Partners A and B get a good equity position without using their own money or credit. All three partners get a small positive cash flow.

This strategy can be used for both long and short term rental and lease option homes.

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