Friday, August 12, 2011

How can I get a businessman acquaintance to help finance an investment property?

So I am an aspiring entrepreneur, I have been trying to educate myself with regards to property acquisition to get off the ground. I am 18 years old an a university student with only about 10k/yr casual work income and about 10k in liquid ets. So no bank will take me seriously. I have found a property that I believe to be undervalued and full of potential in Adelaide Australia (and I'm relatively confident we won't see a housing bubble burst like the US as our buying pressure is incredible). How can I make a proposition to a very wealthy businessman I met at a convention (we formed a tentative acquaintance) for him to finance the property while keeping it in my name, with rental returns helping to cover repayments (I would be able to pay up to $150/wk which when combined with consistent tenancy should more than cover loan repayents). I know that I wouldn't be in a position to shoulder the risk myself but how can I pitch the offer to the gentleman that I have met (who by my impressions seemed far from conservative, and encouraged my interest in property investment) to take it for me. Are there any ways of making it worth his while and risk (obviously sharing returns, gains) while keeping the title in my name and not getting tied up in potentially dangerous legal obligations? Any advice from someone who started out with backing from an entrepreneur would be most useful. Oh - and don't say 'talk to him' - I want to have some sort of offer in place before contacting him. Thanks!

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