Multi-Family and Apartment Investing

User Stats

14
Posts
4
Votes
Tyler Brown
4
Votes |
14
Posts

LLC vs Tenancy in Common

Tyler Brown
Posted Sep 27 2019, 15:54

My business partner and I are under contract for a multifamily property. He is putting his half of the downpayment from funds from a 1031 exchange. He was told by the 1031 agent that we cannot form an LLC for the first year and must instead proceed in a Tenants in Common agreement for the first year and then may transfer into an LLC. Has anyone else heard this? Neither our lawyer nor accountant has heard similar, and I wasn't able to find this information on the forums. TIA

Loading replies...