The LLC's can purchase as a TIC and both be on the P&S and title. @Alisha Decoteau sorry that I missed you when I was in Decatur last month.
@Alisha Decoteau , @Jeff Greenberg is right. There's also a couple other options. You can have just one entity on the PSA and have a passage that reserves the right to assign the contract to add an additional partner. Then, after DD is complete you do the assignment to both entities.
More commonly, however, would be to just have a passage that allows you to assign the contract to an entity that you control (most commercial PSAs have this clause so it won't be shocking to the seller). Then, after DD is complete you'd form a new entity for the joint venture and the members of the new entity would be each of the two LLCs. Then whichever entity executed the purchase contract would then assign the purchase contract to that new entity. That's done all the time.
@Jeff Greenberg Thank you. Yes, I'm sorry too. We passed on the portfolio deal, but I should have made arrangements to meet you anyway. I will inbox you.
@Brian Burke That makes sense and I'm familiar with having an assignment clause but wasn't sure if it can be assigned to two companies. Nevertheless, assigning to two companies under an LLC makes sense and give me confirmation.
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