Need Some Strong Advice!!!! Making Moves

[Leroy Fellis]

Good Evening BP people,

I need some advice. In a nutshell mother, two brother and I have decided to create our own REI company. The partnership agreement has been drafted. We all will own 25% of the company. When we find a deal(First few) well will put up 25% of the capital needed to purchase the property. As Cash flow flows, we will Divide(after a certain amount of months) 70% of the cash flow by 4 to go to each individual. The Main question I have is financing the Deals. We plan on House hacking our first property. My mother will live in a Triplex or Quad(Praying Quad) for the first property. We are looking at using possibly Conventional, Conventional 97 or FHA. What I don't know is, would the back allow all of us to sign on the property or would we just use the LLC to purchase? Can an LLC be used to purchase a Property with FHA,Conventional, Conventional 97? Will the back use the LLC for approval of loan or my mother or all of us? I know there are many questions in this post, I just really do not know how it would work because all of use are even partners in the company.

Thanks you all in advance for your meaningful comments.

[Rachel H.]

@Leroy Fellis Buying a property the way you mentioned will probably require it to be in your own name rather than an LLC. Later on, you can transfer the title to the LLC and keep the remaining financing in place. Good luck with everything!