Buying a turnkey with a partner
Hi investor folks,
My partner and I are looking to buy a rental property in GA for a corporate lease (we already have one connected). Originally, we planned for me to handle the down payment with my HELOC, and my partner would pay me 50% of the HELOC payment each month while getting his own mortgage for the rest (75% of the purchase price).But it turns out he couldn't snag a mortgage for the full amount. So now we're looking at either just me on the loan (using both HELOC and mortgage, with him still paying 50% for my HELOC) OR both of us on the loan (with the down payment still on me). Most lenders aren't cool with transferring the title to an LLC after closing, so it's likely we'll have to close under our personal names. I'm also thinking of tossing him 1% of my 3% commission as an agent (I have license) to put towards the down payment. And we'll still do a 50/50 split on the work we put in.
Given all this, how do you think we should handle the loans, profit distribution %, and our partnership structure (tenancy in common or joint tenancy or LLC)?
Your input will be highly appreciated.