Buying RE with a partner using conventional loans

[Daniel Mills]

Hi guys,

I ran out of conventional loan slots. But, I have formed a partnership with someone who still has 9 left (he owns his personal residence). How do we buy property with his loan and my money? 

I know that some people will say to make an LLC. We already have one, but the problem is purchasing the property.

From my experience with conventional loans, the money for the down payment has to come from the person taking out the loan. It cannot be a gift. Is the only way to put the money in a joint account? Can I put the money in our LLC business checking account and use that? Or, will the conventional lender not allow it.

This is one of the things you hear people do all the time, but no one shares the details. How do you do this?

Thanks,

Daniel