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Updated almost 10 years ago on . Most recent reply

Account Closed
  • Houston, TX
20
Votes |
37
Posts

LLC needed to invest with a partner?

Account Closed
  • Houston, TX
Posted

Is an LLC a practical requirement to investing in buy-and-hold with a partner? If so, is there any way to get around the financing issue with buying under an LLC without having to risk the due-on-sale clause?

In my research, I've basically concluded that for a few SFHs, an LLC isn't practical/worth it from an asset protection standpoint if I want to finance, but what if I want to partner with someone? How do I do that and finance as well?

Most Popular Reply

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57
Posts
10
Votes
Paul Brockmann
  • Northborough, MA
10
Votes |
57
Posts
Paul Brockmann
  • Northborough, MA
Replied

Yes, but I would think a LLC might be the way to go incase the other partner gets sued or goes bankrupt for other reasons other than your partnership. With the LLC, it will be harder for their creditors to reach your co-investment. I would not want something to happen to my partner and have to give up the investment despite you doing anything wrong.

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