I am interested in buying rental houses. I have a friend I am interested in going into business on this adventure. We work well together. One thing we are wondering is how joint ventures effects your borrowing power. Do lenders make sure both parties can afford 100% of every property they wish to buy or do they split the value in half? We don't want to go 50/50 on the first place and get denied on he second buy. Will be hit the borrowing wall because of debt ratio being calculated different?
Does joint ventures effect your borrowing power
- Thread starter brad ell
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- Aug 30, 2007
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- 13,881
Yes, a JV affects your borrowing ability assuming you both are on the mortgage.
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- Nov 15, 2010
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Hello,
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