If I partner with someone buying two properties. How do i set up the partnership? Who's name is on the offer? Who buys insurance? Do insurance companies care? Anything else to think of?
Hi @Jim Peret ,
If you are buying all cash then my advice is to set up an LLC for yourself and your parter should set up an LLC for themselves as well. The two LLCs would be on the purchase contract. And you should have a contract written up between the two LLCs that says out how the ownership will work out exactly. In this LLC to LLC contract you can include a buyout clause, how selling works when both LLCs want to sell, what happens if there is a death, etc.
If you are buying with a mortgage, then check with lenders beforehand to see if they allow the purchase as two LLCs with mortgage jointly under both of your names. Most will have an issue with this.