Using my own LLC to purchase a property with a 50/50 partner

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Using my own LLC to purchase a property with a 50/50 partner

Jackie Sawyer
Member since 2023 · 7 posts · 1 vote

I am under contract to purchase a first rental property with my son 50/50. This will probably be his only investment, although I plan to buy several more in the next year on my own using an LLC. I am wondering if I should take title to this first property 50% in the LLC (as opposed to my name) and 50% in his name. Any comments or feedback on this?

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Crystal SmithPro Member
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Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
2y
Quote from @Jackie Sawyer:

I am under contract to purchase a first rental property with my son 50/50. This will probably be his only investment, although I plan to buy several more in the next year on my own using an LLC. I am wondering if I should take title to this first property 50% in the LLC (as opposed to my name) and 50% in his name. Any comments or feedback on this?



I recommend you research Landtrusts and see if you can close the property inside of a LandTrust. We use land trusts to keep our names and our LLCs off of the public record.  There are other benefits which I won't go into here.  The only challenge we have run into with Landtrusts are some lenders won't allow it.  
312-681-7487
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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Jackie Sawyer:

    I am under contract to purchase a first rental property with my son 50/50. This will probably be his only investment, although I plan to buy several more in the next year on my own using an LLC. I am wondering if I should take title to this first property 50% in the LLC (as opposed to my name) and 50% in his name. Any comments or feedback on this?


    I would recommend buying it under your name and then purchasing future properties under your LLC. If your LLC shares ownership of one property with your son, that could be enough commingling to tie your son to the other LLC assets. Talk to an attorney.

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  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    2y
    Quote from @Jackie Sawyer:

    I am under contract to purchase a first rental property with my son 50/50. This will probably be his only investment, although I plan to buy several more in the next year on my own using an LLC. I am wondering if I should take title to this first property 50% in the LLC (as opposed to my name) and 50% in his name. Any comments or feedback on this?



    I recommend you research Landtrusts and see if you can close the property inside of a LandTrust. We use land trusts to keep our names and our LLCs off of the public record.  There are other benefits which I won't go into here.  The only challenge we have run into with Landtrusts are some lenders won't allow it.  
    312-681-7487
    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Jackie Sawyer

    I would put it in both our names and in future homes purchase in the LLC.

    But as always speak to an attorney and cpa

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