I have recently partnered up with a friend - and we are bout to put offer on the table for a bank owned house. We are not an LLC - what is the best way going about this if down the road we are going to pull an equity loan on the house?
If me and him both put our names on the offer and get the title, will we both have to get approved to get that loan?
What is the best way? LLC, sign on my own with "our" funds, or what?
Both me and my buddy have great credit, both good jobs, but we are just looking ahead to see if this would cause issues down the road.
Thank you for your insight - I greatly appreciate it!
My partner and I started out in a similiar way, confused, even after reading hear. I suggest consulting law firm that specializes in business. Sit down and decide what direction you and your partner want the business to go and take those ideas to the lawyer. They should be able to structure an entity to fit your business plan. Setting up a strong foundation will make future grow easier.
Kyle, take a look at this post from John. I found this to pretty useful, and should clear up some of your questions.
Me and my partner are in the same boat.
If someone could verify the following statement I heard that would be great. I was told by a seasoned investor that a bank will not give a loan to a new LLC for a residential home. Best option is to purchase it under personal credit and transfer the title to the LLC. This invester has 4 personal loans out on rental properties, that she has or will transfer the ownership over to her company.
Does this mean the mortgage is no longer under her name?
Depending on how this works out, this could be the route to take when starting as partners pre-LLC.
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