Logistics of 50/50 Partner LLC
Hey BP Community,
Disclaimer: I am not searching for tax/legal advice here, just looking for guidance and looking to learn how others have done this.
I am looking to buy and hold on a deal by deal basis with a partner (coworker of mine). We are looking to put 25% down (or 30% if required), which would be funded equally by the both of us with a medium term holding period (roughly 5 years). What are the logistics of actually purchasing like this? I was advised to use an LLC by a CPA, but was provided zero guidance on the actual steps and details regarding purchasing. To me, saying "use an LLC" means almost nothing because we already know that an LLC works the majority of the time. I am wondering if I was provided no guidance because this is not a CPA type of issue - maybe its an attorney type of issue?
To be more specific, the questions I am looking to have answered are along the lines of:
1) Do we obtain a mortgage in our own name, or LLC? (our lender was unsure of how lending to LLC works)
2) When making an offer on a property, is the offer in our names as individuals or in the LLC?
3) Should we even create the entity before purchasing, or do we purchase the property ourselves and transfer something (title, idk) into the entity?
4) Who holds the title - LLC, or us as individuals?
As you can probably see, a lot of my questions are around the idea of "who does blah blah blah - the LLC, or us as individuals in our own name(s)?" Basically, I want to be ready to put an offer on a deal the instant my partner and I deem that it is a good deal.
Thanks!