How can I buy out my partner?

[Daniel Mills]

Hi,

In 2015 I bought a rental property with my mother. We are both on the loan. Both of us have continued to grow our portfolios and in order to maximize our Fannie/Freddy loans, I want to buy her out. How do I do this? I hear people say it all the time, but what are the mechanics? Do we have to refinance or is there a way to do this like a normal sale? Any advice would be much appreciated.

Thanks,

Daniel

[Rob Beardsley]

Hey Daniel,

If the property is owned in an LLC, you could buy her shares of the company effectively transferring 100% ownership to yourself. She would still be on the loan and the only way to change that would be to work with the lender.