Purchasing Investment Property with Partner

[Collin Wilson]

Hey everyone. My wife and I are in the process of purchasing a SFH investment property with another couple. The other couple plans on obtaining a personal mortgage and then we plan to title the property under a multi-owner LLC (including all four people). Is this feasible? What hurdles will I face? Will a title company put the property under an LLC or is a quit-claim necessary? Any/all info is appreciated.

[Steven Goldman]

What a great day! In most instances when you finance a property only some of the members of a LLC would be guarantors. Often, it is only one. So the concept is not a failure and mimics what you might find in the financing world.

One of the main issues raised by this scenario is the transfer tax obligations in the State you are buying in. for instances in Pennsylvania you would be required to be 2 percent transfer tax on the transfer to the LLC, 3 percent in Philadelphia. So check on the taxation issue when you transfer from personal to LLC. with new members. Your plan is feasible but watch out for the taxes nd the disputes which might arise from the partnership. I love real estate and G2 Loans wishes you smooth sailing on all of your deals.